Skip to main content
SpringerLink
Log in
Book cover

The Palgrave Handbook of Managing Continuous Business Transformation pp 67–93Cite as

Palgrave Macmillan

Lost in Transformation: Strategy Formulation in a Digitized World

  • Chapter
  • First Online:

Ideas in Brief

Assessing traditional industry analysis in the light of today’s business reality, we provide insights into an alternative framework for strategy formulation and implementation in a digitalized world. The main purpose of this literature review and conceptual chapter is to discuss current challenges for strategic management and to illustrate a novel approach of strategic renewal and their practical implementation in a world lost in transformation. This chapter highlights the relevance of a new approach toward strategy formulation in the face of a changing competitive landscape and provides guidelines for its practical implication. Our findings offer the grounds for practical implications such as that companies ought to strive to manage the challenges of changing business environments via new approaches toward innovation processes. To promote strategic renewal, managers should think in terms of competitive arenas and pipelines of transient advantage. Instead of trying to procure stability in shifting environments by all means, firms should aim to grow with the flow of digital transformation.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   59.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   79.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   219.00
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Bibliography

  • Aldrich, H. E., & Fiol, C. M. (1984). Fools rush in? The institutional context of industry creation. Academy of Management Review, 19(4), 645–670.

    Google Scholar 

  • Ashkenas, R., Kaiser, D., Simmons, K. M., & Caropreso, M. (2013). Change management needs to change: Interaction. Harvard Business Review, 91(6), 18–19.

    Google Scholar 

  • Barley, S. R. (2015). Why the internet makes buying a car less loathsome: How technologies change role relations. Academy of Management Discoveries, 1(1), 5–35.

    Article  Google Scholar 

  • Barnett, W. P., & Hansen, M. T. (1996). The red queen in organizational evolution. Strategic Management Journal, 17, 139–157.

    Article  Google Scholar 

  • Bell, G. (2013). The end of the strategy world as we know it? Rita Gunther McGrath on how sustainable competitive advantage may be a thing of the past. Strategic Direction, 29(8), 37–40.

    Article  Google Scholar 

  • Boersch, C., & Elschen, R. (Eds.). (2007). Das Summa Summarum des Management. Wiesbaden: Gabler.

    Google Scholar 

  • Bolinger, A. R., & Brown, K. D. (2015). Entrepreneurial failure as a threshold concept: The effects of student experiences. Journal of Management Education, 39(4), 452–475.

    Article  Google Scholar 

  • Brynjolfsson, E., & McAfee, A. (2014). The second machine age. Work, progress, and prosperity in a time of brilliant technologies (1st ed.). New York: W. W. Norton & Company.

    Google Scholar 

  • Chandler, A. D. (1977). The visible hand. The managerial revolution in American business. Cambridge, MA: Belknap Press.

    Google Scholar 

  • D’Aveni, R. A., & Gunther, R. (2007). Hypercompetition. Managing the dynamics of strategic maneuvering. In C. Boersch & R. Elschen (Eds.), Das Summa Summarum des Management (pp. 83–93). Wiesbaden: Gabler.

    Chapter  Google Scholar 

  • D’Aveni, R. A., Dagnino, G. B., & Smith, K. G. (2010). The age of temporary advantage. Strategic Management Journal, 31(13), 1371–1385.

    Article  Google Scholar 

  • Danneels, E. (2011). Trying to become a different type of company: Dynamic capability at Smith Corona. Strategic Management Journal, 32(1), 1–31.

    Article  Google Scholar 

  • Derfus, P. J., Maggitti, P. G., Grimm, C. M., & Smith, K. G. (2008). The red queen effect. Competitive actions and firm performance. Academy of Management Journal, 51(1), 61–80.

    Article  Google Scholar 

  • Doz, Y. L., & Kosonen, M. (2010). Embedding strategic agility. Long Range Planning, 43(2–3), 370–382.

    Article  Google Scholar 

  • Eisenhardt K. M. & Martin J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, October–November Special Issue 21, 1105–1121.

    Google Scholar 

  • Frese, M., & Fay, D. (2000). Entwicklung von Eigeninitiative. Neue Herausforderungen für Mitarbeiter und Manager. In M. K. Welge, K. Häring, & A. Voss (Eds.), Management development (pp. 63–79). Stuttgart: Schäffer-Poeschel.

    Google Scholar 

  • Garavan, T. N., & Carbery, R. (2012). Strategic human resource development. In J. P. Wilson (Ed.), International human resource development. Learning, education and training for individuals and organizations (pp. 23–44). Philadelphia: Kogan Page.

    Google Scholar 

  • Garud, R., Kumaraswamy, A., & Sambamurthy, V. (2006). Emergent by design. Performance and transformation at Infosys technologies. Organization Science, 17(2), 277–286.

    Article  Google Scholar 

  • Ghemawat, P. (2002). Competition and business strategy in historical perspective. Business History Review, 76(01), 37–74.

    Article  Google Scholar 

  • Lohmann GmbH. (2015a). The bonding engineers. Retrieved August 22, 2015, from: Lohmann GmbH: http://www.lohmann-tapes.com/en/the-bonding-engineers__1059/

  • Lohmann GmbH. (2015b). Growth needs values. Retrieved August 22, 2015, from: Lohmann GmbH: http://www.lohmann-tapes.com/en/lohmann-values__995/

  • Hambrick, D. C., & Fredrickson, J. W. (2005). Are you sure you have a strategy? Academy of Management Executive, 19(4), 51–62.

    Article  Google Scholar 

  • Hamel, G., Doz, Y. L., & Prahalad, C. K. (1989). Collaborate with your competitors and win. Harvard Business Review, 67(1), 133–139.

    Google Scholar 

  • IdeaConnection. (2015). Open innovation success story: Boosting the pace of scientific discovery with open innovation. Retrieved June 24, 2015, from IdeaConnection: http://www.ideaconnection.com/open-innovation-success/Boosting-the-Pace-of-Scientific-Discovery-with-Open-I-00383.html

  • Klepper, Steven (1996). Entry, exit, growth, and innovation over the product life cycle. In: The American economic review, 562–583.

    Google Scholar 

  • Klepper, S., & Simons, K. L. (2005). Industry shakeouts and technological change. International Journal of Industrial Organization, 23(1), 23–43.

    Article  Google Scholar 

  • Kotter, J. P. (2007). Leading change. Harvard Business Review, 85(1), 96–103.

    Google Scholar 

  • Kotter, J. P. (2014). Accelerate. Building strategic agility for a faster moving world. Boston: Harvard Business Review Press.

    Google Scholar 

  • Laszlo, C., & Zhexembayeva, N. (2011). Embedded sustainability. The next big competitive advantage. Stanford: Stanford Business Books.

    Google Scholar 

  • Leavy, B. (2014). Strategy, organization and leadership in a new “transient-advantage” world. Strategy & Leadership, 42(4), 3–13.

    Article  Google Scholar 

  • Lindgardt, Z., Reeves, M., Stalk, G., & Deimler, M. (2009). Business model innovation. When the game gets tough, change the game. Boston: The Boston Consulting Group.

    Google Scholar 

  • Lubit, R. (2001). Tacit knowledge and knowledge management. The keys to sustainable competitive advantage. Organizational Dynamics, 29(3), 164–178.

    Article  Google Scholar 

  • McGrath, R. G. (1999). Falling forward. Real options reasoning and entrepreneurial failure. Academy of Management Review, 24(1), 13–30.

    Article  Google Scholar 

  • McGrath, R. G. (2013a). The end of competitive advantage. How to keep your strategy moving as fast as your business. Boston: Harvard Business Review Press.

    Google Scholar 

  • McGrath, R. G. (2013b). Transient advantage. Harvard Business Review, 91(6), 62–70.

    Google Scholar 

  • McGrath, R. G., Ming-Hone, T., Venkataraman, S., & Macmillan, I. C. (1996). Innovation, competitive advantage and rent. A model and test. Management Science, 42(3), 389–403.

    Article  Google Scholar 

  • Murmann, J. P., & Frenken, K. (2005). Toward a systematic framework for research on dominant designs, technological innovations, and industrial change. Research Policy, 35(7), 925–952.

    Article  Google Scholar 

  • Nunes, P., & Breene, T. (2011). Reinvent your business before it’s too late. Harvard Business Review, 89(1/2), 80–87.

    Google Scholar 

  • Peltoniemi, M. (2011). Reviewing industry life-cycle theory. Avenues for future research. International Journal of Management Reviews, 13(4), 349–375.

    Article  Google Scholar 

  • Pfeiffer, W., Weill, E., Volz, T., & Wettengl, S. (1997). Funktionalmarkt-Konzept zum strategischen Management prinzipieller technologischer Innovationen, Innovative Unternehmensführung (Vol. 28). Göttingen: Vandenhoeck & Ruprecht.

    Google Scholar 

  • Porter, M. E. (1980). Competitive strategy. Techniques for analyzing industries and competitors. New York: Free Press.

    Google Scholar 

  • Porter, M. E. (1996). What is strategy? Harvard Business Review, 74(6), 61–78.

    Google Scholar 

  • Porter, M. E. (2008). The five competitive forces that shape competition. Harvard Business Review, 1, 80–93.

    Google Scholar 

  • Ryall, M. D. (2013). The new dynamics of competition. Harvard Business Review, 91(6), 80–87.

    Google Scholar 

  • Smith, R. (2013). The end of competitive advantage: How to keep your strategy moving as fast as your business. Research-Technology Management, 5, 64.

    Google Scholar 

  • Sołoducho-Pelc, L. (2014). Competitive advantage. The courage in formulating objectives and expansiveness of a strategy. Procedia – Social and Behavioral Sciences, 150, 271–280.

    Article  Google Scholar 

  • Stalk, G., & Hout, T. M. (1990). Competing against time. Research Technology Management, 33(2), 19–24.

    Google Scholar 

  • Stead, E., & Smallman, C. (1999). Understanding business failure: Learning and un-learning lessons from industrial crises. Journal of Contingencies and Crisis Management, 7, 1–18.

    Article  Google Scholar 

  • Suárez, F., & Utterback, J. (1995). Dominant designs and the survival of firms. Strategic Management Journal, 16(5), 415–430.

    Article  Google Scholar 

  • Teece, D. J. (1984). Economic analysis and strategic management. California Management Review, 26(3), 87–110.

    Article  Google Scholar 

  • Teece, D. J., Pisaro, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.

    Article  Google Scholar 

  • Ulwick, A. W. (2002). Turn customer input into innovation. Harvard Business Review, 80(1), 91–97.

    Google Scholar 

  • van Knippenberg, D., Dahlander, L., Haas, M. R., & George, G. (2015). Information, attention, and decision making. Academy of Management Journal, 58(3), 649–657.

    Article  Google Scholar 

  • Voelpel, S., Leibold, M., Tekie, E., & von Krogh, G. (2005). Escaping the red queen effect in competitive strategy. European Management Journal, 23(1), 37–49.

    Article  Google Scholar 

  • Wilson, J. P. (2012). International human resource development. Learning, education and training for individuals and organizations (3rd ed.). London/Philadelphia: Kogan Page.

    Google Scholar 

  • Wincheringer, W. (2015). Industrie 4.0. Lean Management, Digitalisierung, Digitales Produktionslabor [Speech, 16 June 2015], Arbeitskreis Digitale Wirtschaft/Industrie 4.0, Koblenz.

    Google Scholar 

  • Wirtz, B. W. (2006). Ganzheitliches Direktmarketing. Wiesbaden: Gabler.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. IHK-Chair of Small and Medium-Sized Enterprises, WHU – Otto Beisheim School of Management, Vallendar, Germany

    Nicole Gottschalck & Christina Günther

Authors
  1. Nicole Gottschalck
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Christina Günther
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Nicole Gottschalck .

Editor information

Editors and Affiliations

  1. CIO Magazine / CIOmove, München, Bayern, Germany

    Horst Ellermann

  2. Darla Moore School of Business, University of South Carolina, Columbia, SC, USA

    Peter Kreutter

  3. WHU - Otto Beisheim School of Management, Vallendar, Germany

    Wolfgang Messner

Copyright information

© 2017 The Author(s)

About this chapter

Cite this chapter

Gottschalck, N., Günther, C. (2017). Lost in Transformation: Strategy Formulation in a Digitized World. In: Ellermann, H., Kreutter, P., Messner, W. (eds) The Palgrave Handbook of Managing Continuous Business Transformation. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-60228-2_3

Download citation

Publish with us

Policies and ethics

Search

Navigation