Business Portfolio Strategic Management, Formation Ambidextrous at the Holding Company Level

Subject Areas : Strategic Management Researches

mohamad talari ¹ , seyed hamid khodadad Hosseini ² , asadolah kordnaeij ³ , adel azar ⁴

1 - دانشجوی دکتری مدیریت استراتژیک، دانشکده مدیریت و اقتصاد، دانشگاه تربیت مدرس
2 - ...
3 - دانشیار مدیریت بازرگانی، دانشکده مدیریت و اقتصاد، دانشگاه تربیت مدرس
4 - استاد مدیریت صنعتی، دانشکده مدیریت و اقتصاد، دانشگاه تربیت مدرس

Received: 2017-01-24 Accepted : 2017-05-08 Published : 2017-08-23

Keywords: Ambidextrous Portfolio, Capability Matrix, Requirement Matrix, Balancing Matrix, Portfolio Strategic Management, Theorizing of Classical Foundation Data,

Abstract :

Given the current business environment, one of the main challenges in corporates is how to manage their businesses portfolio strategically. On this basis, and given the criticisms of existing corporate portfolio management (CPM) models, the purpose of this study provide a model for effective portfolio management in corporate. This research is inductive approach and qualitative method and classic grounded theory strategy was used. Semi-structured interviews to collect data and using theoretical sampling with 22 experts were interviewed in the 13 corporate. Coding and analysis of the interviews led to the formation of the concept of "ambidextrous portfolio" as the core category of the study. The findings led to the formation of two matrix "Capability" and "Requirement” for analysis the SBU. Using the output and the dimensions of the two matrices, "Balancing Matrix" was formed on the basis of the logic underlying ambidexterity. This matrix divided SBUs to four category and corporate decisions will be different for each group. Finally it was founded that corporates to analyze their portfolios use tools orientation or approach orientation. Corporate orientation determine balance of their portfolios.

References:

رحمان سرشت، حسین، فتح الهی، افشین، (1389) استراتژی‌ها و شیوه‌ها در شرکت‌های مادر، تهران: نشر دوران، چاپ اول.

گولدینگ، کریستینا، (1394) تحقیق داده بنیاد: راهنمای عمل برای مدیریت، کسب‌وکار و بازاریابی، ترجمه سید محمد اعرابی، شهرام خلیل نژاد، سیدعلیرضا‌ هاشمی، تهران: دفتر پژوهش‌های فرهنگی، چاپ اول.

3. Ansoff Hi, Kirsch W, Roventa P. (1982), Dispersed positioning in portfolio analysis, Industrial Marketing Management, 11:(1), 237-252.

4. Bettis Ra, Hall Wk. (1981), Strategic portfolio management in the multibusiness firm, California Management Review, 24, 23-38.

5. Birkinshaw, J, Gupta, K. (2013), clarifying the distinctive contribution of ambidexterity to the field of organization studies. The Academy of Management Perspectives, 27:( 4), 287–298.

6. Campbell, A, Luchs, K. (1992), Strategic synergy, London: Butterworths.

7. Cardozo, R, Wind, J. (1985), Risk return approach to product portfolio strategy, Long Range Planning, 18(2), 77–85.

8. Carlesi L, Verster B, Wenger F. (2007), The new dynamics of managing the corporate portfolio, McKinsey on Finance, spring, 1–8. 

9. Chatterjee, S. (1992), Sources of value in takeovers: Synergy or restructuring—Implications for target and bidder firms. Strategic Management Journal, 13(4), 267–286.

10. Christensen, H, Cooper, A, de Kluyver, C. (1981), The “dog” business: A reexamination, Academy of Management Proceedings, 26–30.

11. Corbin J, Strauss A. (2015), Basics of Qualitative Research Techniques and Procedures for Developing Grounded Theory, Sage publishing, 4th Edition.

12. Cummings, S, Daellenbach, U. (2009), A guide to the future of strategy? The history of long range planning, Long Range Planning, 42, 234–263.

13. David, P, O’Brien, J.P, Yoshikawa, T, Delios, A. (2010), Do shareholders or stakeholders appropriate the rents from corporate diversification? The influence of ownership structure. Academy of Management Journal, 53(3),636–654.

14. Day, D. (1977), diagnosing the product portfolio. Journal of Marketing, 41,29–38.

15. Devinney, T.M, Stewart, D.W. (1988), Rethinking the product portfolio: Ageneralized investment model, Management Science, 34(9), 1080–1095.

16. Devinney, T.M, Stewart, D.W, Shocker, A.O. (1985), A note on the application of portfolio theory: A comment on Cardozo and Smith, Journal of Marketing, 49(4), 107–111.

17. Duncan, R.B. (1976), The ambidextrous organization: Designing dual structures for innovation, In R. H. Kilmann, L. R. Pondy, & D. Slevin (Eds.),The management of organization design: Strategies and implementation (pp.167–188). New York: North Holland.

18. Fernandez, W.D. (2004), ‘The Grounded Theory method and case study data in is research: Issues and design’, in Hart, D.N. and Gregor, S.D. (eds) Information Systems Foundations: Constructing and Criticising, ANU EPress,Canberra Australia.

19. Glaser, B.G. (1978), Theoretical Sensitivity: Advances in the methodology of grounded theory, Mill Valley, Calif. Sociology Press.

20. Glaser, B. G. (1998). Doing Grounded Theory: Issues and discussions. Mill Valley, Calif. Sociology Press.

21. Glaser, B. (2005), The grounded theory perspective III: Theoretical coding,Sociology Press. Mill Valley, CA.

22. Glaser B.G, Holton J. (2005), Staying Open: The use of theoretical codes in grounded theory, The Grounded Theory Review, 5 (10), 1-20.

23. Goold, M, Campbell, A, Alexander, M. (1998), Corporate strategy and parenting theory, Long Range Planning, 31(2), 308–314.

24. Grant, R.M. (2010), Contemporary strategy analysis (7thed.), Malden, MA:Blackwell.

25. Hambrick, D, MacMillan, I. (1982), The product portfolio and man’s best friend. California Management Review, 25(1), 84–95.

26. Haspeslagh, Ph. (1982), portfolio planning, uses and limits, Harvard Business Review, 60 58-73.

27. Hax, A.C, Majluf, N.S. (1983), The use of the industry attractiveness –business strength matrix in strategic planning, Interfaces, 13, 54-71.
28. Henderson, B. (1970), the product Portfolio, Perspective of Boston Consulting
Group, 1.

29. Hoskisson, R.E, Johnson, R.A. (1992), Corporate restructuring and strategic change: The effect on diversification strategy and R&D intensity, Strategic Management Journal, 13(8), 625–634.

30. Johnson, G, Whittington, R, Scholes, K, Angwin, D, Regnér, P, (2014),Exploring Strategy: Text & Cases (10th), Prentice Hall imprint, UK.31. Lavie, D, Kang, J, Rosenkopf, L. (2011), Balance within and across domains:The performance implications of exploration and exploitation in alliances.
Organization Science, 22, 1517–1538.

32. Lavie, D, Rosenkopf, L. (2006), Balancing exploration and exploitation in alliance formation. Academy of Management Journal, 49, 797–818.

33. March, J.G. (1991), Exploration and exploitation in organizational learning,Organization Science, 2(1), 71-87.

34. Nippa, M, Pidun, U, Rubner, H. (2011), Corporate Portfolio Management:Appraising Four Decades of Academic Research, Academy of Management Perspectives, 25, 50-66.

35. O’Reilly, C.A, Tushman, M.L. (2011), Organizational Ambidexterity in Action: How Managers Explore and Exploit, california management review,53(4), 1-18.

36. O’Reilly, C.A, Harreld, J.B, Tushman, M.L. (2009), Organizational ambidexterity: IBM and emerging business opportunities, California Management Review, 51, 1–25.

37. Philip, T.U, William, E.E, Rajunor, B.A. (2012), Portfolio Analysis Models: AReview, European Journal of Business and Management, 4, 101-120.

38. Pidun, U, Rubner, H, Krühler, M, Untiedt, R, Nippa, M, (2011), Corporate Portfolio Management: Theory and Practice, Journal of Applied Corporate Finance, 23, 63-76.

39. Rothaermel, F.T, Deeds, D.L. (2004), Exploration and exploitation alliances in biotechnology: A system of new product development. Strategic Management Journal, 25, 201–221.

40. Seeger J.A. (1984), reversing the images of BCG's Growth Share Matrix,Strategic Management Journal 5, 93-97.

41. Segev Eli. (1995), Corporate Strategy & Portfolio Models, South-Western Pub.

42. Thompson, A.A, Strickland, A.J. (1996), Strategic management: Concepts & cases (9th ed.), Boston, MA: Irwin McGraw Hill

43. Trautwein, F. (1990), Merger motives and merger prescriptions. Strategic Management Journal, 11(4), 283–295.

44. Tushman, M.L, O’Reilly, C.A. (1996), the ambidextrous organization:Managing evolutionary and revolutionary change, California Management Review, 38, 1–23.

45. Untiedt, R, Nippa, M, Ulrich, P. (2013), Application matters: how different corporate portfolio management practices impact firm performance, Int. J.Business Performance Management, 14(2), 63-76.

46. Untiedt. R, Nippa, M, Pidun, U. (2012), Corporate Portfolio Analysis Tools Revisted: Assessing Causes That May Explain Their Scholarly, International Journal of Management Reviews, 14(3), 263–279.

47. Van der Velten, T, Ansoff, I. (1998), Managing business portfolios in German companies, Long Range Planning, 31(6), 879–885.

48. Wensley, R. (1981), Strategic marketing: Betas, boxes or basics. Journal of Marketing, 45, 173–183.

49. Wensley, R. (1982), PIMS and BCG: New horizons or false dawn? Strategic Management Journal, 3(2), 147–158.

50. West, D, Ford, J, Ibrahim, E, (2015), Strategic Marketing: Creating Competitive Advantage, OXFORD.

51. Wind, Y, Mahajan, V. (1981), Designing product and business portfolios,
Harvard Business Review, 59(1), 155–165.