Knowledge that Transforms

Many corporations have now discovered the value of a venture capital programme as an aid to the corporate development function. The article describes the venture capital business, reviews its history, and indicates the reasons for the resurgence of interest in corporate venturing. The problems of direct venture capital investment by corporations are enumerated and the trend towards investment in outside venture capital partnerships is explained. The conclusion drawn is that, whereas venture capital is a useful tool for corporate development, it is difficult to do internally and an outside partnership investment can serve as an alternative first step or as a supplement.

The need for strategic planning by firms to achieve an alignment with their environment is widely recognized. Various studies have analysed the structures and strategic processes utilized by firms in their attempts to establish domains and attain goals. Yet the problems faced by firms in regulated environments by and large have been ignored. This paper examines the critical differences found in regulated environments that affect strategic planning. Propositions which can serve as the basis of future empirical research are offered and a theoretical framework in which to view the regulated industry situation is developed.

The decision to build market share has major resource‐allocation implications. To aid managers in assessing these implications, research was conducted to determine general relationships between changes in market share and variables representing market strategies and competitive position. The research was based on multiproduct, cross‐sectional regression analyses and includes variables that are—or should be—readily available to most businesses.

Previous research has suggested that low share market businesses have dismal prospects. This study examines low share businesses which are effective. In particular, it examines the product‐market choices and competitive strategies of effective low share businesses, comparing them with two control groups: effective high share and ineffective low share businesses. Data are drawn from PIMS data bases and hypotheses are tested using cluster analysis and discriminant analysis. Effective low share businesses are found to locate in stable rather than protected environments. Their competitive strategies are strongly characterized by selective focus on specific strengths.

Thirty‐three case histories of the process of formulating the nature of a strategic decision are analysed to determine what patterns emerge when they are compared with the Lyles' model of strategic problem formulation. A description of each pattern, its causes, and results are discussed.

The paper contains a review and evaluation of empirical and case studies on the performance of whole enterprises. Research from a diverse array of academic disciplines and research traditions is included. The central focus is on identifying factors that influence organizational performance, and discussing implications for future interdisciplinary research and the strategic management of contemporary organizations.

The relationships between the difficulty of entry and competitive strategies in five industries, chosen for their differing structural contexts, were tested. Statistical support was found for the value of pre‐entry analysis of entry barriers and of firms' predicted responses to potential entry. In particular, the creation of idle productive capacity appears to be a potent deterrent to new entrants.