Boulding, William; Staelin, Richard
June 1995
Marketing Science;1995 Part 2 of 2, Vol. 14 Issue 3, pG222
Academic Journal
This paper provides an approach for assessing generalizable effects of strategic actions on firm performance. We identify five key issues that need to be addressed before one can have confidence in the obtained strategic generalization. In addition, we suggest a methodology for attacking each of these five issues. We then illustrate this framework using the example of demand-side returns to R&D spending. We document two empirical generalizations in this research. First and foremost, we show that demand returns to R&D spending depend on whether the firm has ability and motivation to take advantage of the R&D investment. Thus, only firms with high ability and motivation leverage the R&D investment into monopoly rents in the form of subsequent price increases. Second, we show that the concept of a firm needing both ability and motivation to sustain returns from a strategic action generalizes across strategic actions. We make two other conclusions about empirical approaches to strategy research. First, to produce valid empirical generalizations about the effects of strategic actions on firm performance requires a study to address adequately the five issues we establish herein. Second, one readily available strategy database, PIMS, enables the researcher to address each of these issues.


Related Articles

  • Como afecta el contexto cultural en la administración de los negocios internacionales. Castro, O.; Abreu, J. L. // Revista Daena (International Journal of Good Conscience);2008, Vol. 3 Issue 1, p679 

    The new frame of negotiations and the intercultural strategies in a new world scenario, the demands of the market with respect to the commercial and cultural interactions among countries, starting with the new design of independent companies and differentiated among them is studied, concluding...

  • Business Processes and Business Functions: a new way of looking at employment. Brown, Sharon P. // Monthly Labor Review;Dec2008, Vol. 131 Issue 12, p51 

    The article discusses the significance of business processes and business functions in creating a corporate strategy. It notes the importance of deciding on the right business function to become more efficient and competitive or address changes in demand for outputs or supply of inputs. It also...

  • Finance and the Optimal Investment Decisions of a Firm Under Imperfect Competition. Watanabe, Toshio // Kyoto Economic Review;Jun2011, Vol. 80 Issue 1, p20 

    Both John Maynard Keynes and Hyman Minsky emphasized the effects of long-run expectations and fi nancial structures on investment decisions. Minsky alleged that fi nancial booms and collapses become inevitable in market economies and developed a new theory called the "fi nancial instability...

  • Empirical Modeling of R&D Demand in a Dynamic Framework. Roberts, Mark J.; Vuong, Van Anh // Applied Economic Perspectives & Policy;Jun2013, Vol. 35 Issue 2, p185 

    Empirical analysis of firm-level investment in research and development (R&D) and its effect on innovation patterns and productivity has advanced as a result of innovation surveys in many countries. The weak link in the analysis of these surveys is the empirical model of firm R&D choice. In this...

  • 1 INTRODUCTION & METHODOLOGY: 1.1 WHAT DOES THIS REPORT COVER?  // Botswana Economic Studies;2007, p14 

    The article focuses on the methodology developed by ICON Group International Inc. to help executives assess the strategic investment and entry alternatives of business firms in Botswana. The methodology breaks down a strategic potential into latent demand and accessibility. It states that it...

  • A Pricing Strategy for Manufacturers. Richers, Raimar // Management International Review (MIR);1966, Vol. 6 Issue 3, p115 

    This article focuses on pricing strategy for manufacturers. The business administrator is constantly faced with the need to take decisions about matters which may be crucial to the success or failure of his business enterprise but which are surrounded by the uncertainties of a foggy future....

  • Blue Ocean Strategy. Chan Kim, W.; Mauborgne, Renee // Leadership Excellence Essentials;Sep2007, Vol. 24 Issue 9, p20 

    The article discusses the concept of the blue ocean strategy. The strategy is to create new market spaces or blue oceans and reconstruct market boundaries. Any organization can do away with head-to-head zero-sum competition with such strategy. An organization may get rid of the factors it...

  • Channel Environment and Channel Leadership. Etgar, Michael // Journal of Marketing Research (JMR);Feb1977, Vol. 14 Issue 1, p69 

    The relationship between various factors characteristic of channel environments and the extent of control of a channel leader in his channel is explored. The characteristics of demand, the marketing technology used, and interchannel competition are found to be correlated with greater channel...

  • Thanks to the IBF. Lapide, Larry // Journal of Business Forecasting;Fall2012, Vol. 31 Issue 3, p26 

    The article focuses on the contribution of the Institute of Business Forecasting and Planning (IBF) in the U.S. on the business forecasting and planning industry. It states that IBF was founded by Chaman Jain and mentions that the organization provides business forecasting knowledge to young...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics