Haris STUCKI the Mapping of an Agile Strategy
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The Mapping of an Agile Strategy in a New Business World From atoms and recipes to bytes and mental agility PhD Thesis submitted to the Faculty of Economics and Business Enterprise Institute University of Neuchâtel For the degree of PhD in Management by Haris STUCKI Accepted by the dissertation committee: Prof. Sam Blili, University of Neuchâtel, thesis director Prof. Kilian Stoffel, University of Neuchâtel, president of the dissertation committee Prof. Michel Kostecki, Warsaw School of Economics, Poland Prof. 'RURWD/HV]F]\ĔVND, IDRAC Sophia-Antipolis, France Defended on 17 December 2014 Faculté des Sciences Economiques Avenue du 1er-Mars 26 CH-2000 Neuchâtel www.unine.ch/seco Summary: In a hostile post-industrial business environment characterised by globalisation and the immaterial age, we first establish an Initial Strategy Map which is based on the state of knowledge and focuses on the agility requirement. After this, based on the data collection of the empirical research, we adopt, synthesise and specify this initial framework as the Proposed Dynamic Strategy Map. Finally, as a result of an in-depth analysis of six business cases, the Proposed Dynamic Strategy Map is validated and clarified at the end of the thesis. Such a framework offers a strategic approach for small and medium companies (SMEs) from established economies with tradable goods that have a low likelihood of imitation and (the potential for) a global brand. Due to their simple structure and manageable sites and scopes, our decision to analyse SMEs as units of observation can methodologically be justified and adds value to the understanding of their characteristics. Keywords: Strategy map, integrated management system, balanced scorecard, behavioural economics, traditional recipes, complexity, competitive advantage, x-factor, agility, flexibility, rapidity, knowledge, strategic fit, intangible skills, wetware, networks, outsourcing, alliances, virtuality, meta-value chain, modern company. Mots clés: Carte stratégique, système intégré de gestion, tableau de bord prospectif, économie comportementale, recettes traditionnelles, complexité, avantage compétitif, x-facteur, agilité, flexibilité, rapidité, savoir, adéquation stratégique, compétences intangibles, wetware, réseaux, externalisation, alliances, virtualité, filière, entreprise moderne. PREFACE III PREFACE During my business administration studies at the University of Berne, my prime interest was strategy. However, before delving into this fascinating topic, I first intended to better comprehend in detail other, interrelated, aspects of the fairly complex functioning of most companies, i.e. their processes, systems and organisation. In this context, Mintzberg, Lampel, Quinn and Ghosal quote that “…one cannot decide reliably what should be done in a system as complicated as a contemporary organization without a genuine understanding of how that organization really works.”1 An effective corporate strategy leading to a corporate advantage that creates value is a consistent set of the following elements: vision, goals and objectives, resources, businesses and organisation.2 My extensive experience in a managerial consulting, auditing and project- leader (including mergers and acquisitions) position, with direct reporting lines to either executive management or the board of directors, has enabled me to gain significant practical insights into all of these elements. Being in charge of a start-up production plant in South-East Asia and a director in the project team for the business development of a car manufacturer in South-East Europe were also very important professional and personal experiences in this regard. However, after a number of years of intensive international business experience, I felt that my theoretical background was no longer up-to-date. This is why the MBA degree at the University of Geneva considerably helped to refresh my knowledge about strategy and provided new perspectives on the latest business and academic developments. This was the basis upon which my supervisor Professor Sam Blili, director of the Enterprise Institute of the University of Neuchâtel, considerably reignited my enthusiasm and curiosity towards strategy, which had never really faded. His enormous academic and practical excellence, as well as his worldwide network and innovative, i.e. out-of-the box, approaches to international strategy were always an inexhaustible source for exciting discussions and triggered my further enthusiasm for the topic. This is the context from which my research emerged and which will help to clarify what strategy is all about and what the ongoing and future challenges for Western SMEs will look like. I am convinced that the conclusions of this research will provide transparent insights and useful practical advice in order to successfully cope with ongoing challenges which will definitely have to be faced sooner rather than later. Therefore, I must once again acknowledge Professor Sam Blili, from whom I have greatly benefited during the completion of this thesis. He has patiently dedicated a lot of his time to me, shared his boundless experience, knowledge and expertise, and strongly encouraged, inspired, assisted and guided my work through sometimes troubled waters. Sharing his ideas on many other topics, as well as his impressive mirroring technique during discussions, helped me to significantly challenge and shift a number of personal views and biases which I had held for a long time. In short, working under Professor Sam Blili’s supervision and guidance has been a great privilege. I am also very much indebted to him for his support and trust, but also the freedom he gave me when lecturing in 2010/2011 (a bachelor’s course) and 2013/2014 (a master’s course) at his institute. I am also much obliged to my “International Strategy” master’s course class for their valuable contributions, availability and patience. 1 Mintzberg, Lampel, Quinn and Ghoshal (2003), p. x 2 Collis and Montgomery (2005), pp. 10-11 V PREFACE In addition, the discussions and input of other professors, assistants, researchers and students of the institute also inspired me on the journey of this research. I would also like to thank my wife and children, who for long periods had to patiently tolerate the absence of their husband and father while he was working on this research. I really appreciate your understanding! Moreover, I am glad that my sister often asked me about what I was actually doing and learning in my studies. This was an additional motivation to write about my interests. Finally, extraordinary gratitude goes to my parents, who enabled me to pursue a door- opening education, who were always there for me, and to whom I owe so much. VI Indexes: TABLE OF CONTENTS LIST OF ACRONYMS LIST OF BUSINESS CASES LIST OF FIGURES VII TABLE OF CONTENTS CHAPTER I INTRODUCTION ................................................................................................................1 1.1 CHALLENGE ..................................................................................................................................................3 1.2 PURPOSE ........................................................................................................................................................4 1.3 STRUCTURE ..................................................................................................................................................9 1.4 META-ANALYSIS APPROACH ..........................................................................................................10 CHAPTER II TWENTY-FIRST CENTURY BUSINESS ............................................................15 2.1 SUMMARY ..................................................................................................................................................17 2.2 DESCRIPTION ...........................................................................................................................................17 2.2.1 AN EVER-CHANGING AND COMPETITIVE WORLD .........................................................17 2.2.1.1 Globalisation ......................................................................................................................................18 2.2.1.2 The Immaterial Age ........................................................................................................................20 2.2.2 NEW PARADIGMS ...............................................................................................................................20 2.2.2.1 Previously Unknown Phenomena ..........................................................................................20 2.2.2.2 From Atoms to Bytes ....................................................................................................................20 2.2.2.3 Better, Faster and more Dynamic ..........................................................................................21 2.2.2.4 Uncertainty and Ambiguity ........................................................................................................22 2.2.2.5 Complexity...........................................................................................................................................23 2.2.2.6 Risk Management ...........................................................................................................................24 2.3 DISCUSSION ..............................................................................................................................................25