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Chapter 2 The business ecosystem, strategic intent, vision and ambidexterity

2.2 Multi-theoretical approach and conceptual framework

The focus for the thesis is the role of strategic intent in knowledge transfer and creation in collaborative ventures. The literature review therefore encompasses three key areas strategic intent, collaboration and knowledge, which are the broad areas studied in the literature. The interest of the thesis is how better understanding of these study areas can potentially inform senior managers. An organisation’s senior managers are responsible for the diverse functions, operating with multiple frames of reference that can help ‘understand complex reality’ (van de Ven & Johnson 2006, p. 813). Within an organisation it is usual ‘that multiple functions, resources, and disciplines are necessary to transform innovative ideas into reality’ (van de Ven 1986, p. 605).

Strategy knowledge is a key element of this study as the strategic actors, the senior managers, make and enact decisions in the social domain of the organisation (Chia 2004; Tsoukas & Knudsen 2002; Wenger 1998). Strategising, collaborating and creating knowledge are integral parts of research in modern management, spanning multiple fields including strategic management, international business and knowledge management. Such diverse components of modern management literature incorporate various theories. Adopting a multi-theoretical approach to the study of knowledge creation and transfer between organisations in collaborative ventures is thus a rational approach (Carlile & Christensen 2005; Christopher 2010; Denis, Langley & Rouleau 2007). No one theory can give a complete picture of a

phenomenon; theories are by necessity incomplete abstractions, consequently a ‘pluralistic approach of comparing multiple models of reality is therefore essential for developing valid knowledge’ (van de Ven & Johnson 2006, p. 817). Within this thesis the dynamics of organisational knowing and absorptive capacity, being capabilities, are central to the evolutionary perspective (Nelson & Winter 1982). Such capabilities are resources that contribute to competitive advantage (Barney 2001). Consequently theories of the resource-based view (Penrose 1959; Wernerfelt 1984), the business ecosystem (Moore 1993; Lewin & Volberda 2003) and dynamic capabilities (Teece et al 1997) provide the context for exploration of the concepts strategic intent, collaboration, absorptive capacity and organisational knowing. The extent to which these theories are included varies, as the thesis is contributing to preliminary theory building by connecting the key concepts and exploring relationships, rather than causal analysis (Carlile & Christensen 2005). Throughout the thesis the dynamic nature of the key concepts is central and they are approached from this perspective.

Furthermore drawing widely from the general management literature and its diverse disciplines can stimulate thinking and the development of new ideas by recombining other ideas in a new context (Bartel & Garud 2009; Boland & Tenkasi 1995). Schmalensee (2001, p. 76) concurs, observing that connecting different disciplines ‘releases creativity and power that would be impossible if people had remained rooted in their original mind-set’. Thus investigating strategy practices in a pluralistic context, such as a collaborative venture, can benefit from alternative conceptual frames (Denis, Langley & Rouleau 2007), reducing the risk of ‘intellectual chaos in a

field in which specialized theories dealing with specialized topics seem unrelated to one another’ (Stryker 2008, p. 21).

Importantly drawing from the general management literature may assist in bridging the chasm between academics and practitioners. Academics operate at high levels of abstraction which is different to decision makers who are daily making concrete decisions and spending budgets; they are unable to wait for academics to define the terms (Schneider 2007). She continues that theory is concerned with causality whereas industry practitioners want functionality and finality; finality can be developed by ‘applying black-box approaches, whereas causality requires opening the box. According to Luhmann’s (2006) social systems theory, technicians need not ask the ‘why’ question as long as they receive satisfying results by asking the ‘how’ question’ (Schneider 2007, p.614). In such ways ‘the dual objectives of applied use and advancing fundamental understanding’ can be achieved (van de Ven & Johnson 2006, p. 803). Bowman, Singh and Thomas (2002, p. 46) indicate that ‘interdisciplinary research is, and should be, one of the primary, distinctive competences’ of the field of strategy and strategic management research. This thesis is drawing together several distinct concepts encapsulated in the practice of strategising in a collaborative venture. Thus a multi-theoretical approach is adopted.

Incorporating a multi-theoretical approach and drawing distinct concepts from the general management literature necessitates a wide literature review. In the following review, diverse concepts are drawn together. To assist in connecting the diverse elements of this thesis, Figure 2.1 has been developed as a conceptual framework to

provide guidance throughout the literature review. The figure is simplified, to show the key connections (Mason & Leek 2008).

Figure 2.1 Conceptual framework of the thesis

In the figure, the companies A and B form a collaboration. Collaboration is the focus of Chapter 3. The collaboration has been selected as a strategy separately by each organisation as part of their strategic intent, to achieve their main ambition. Strategic intent is discussed further in this chapter. The companies and the collaboration operate in the business ecosystem, shown in the background. The business ecosystem contains external influences and reciprocal flows that may affect the companies and/or the collaboration and is also discussed in this chapter. In the process of

Organisation A Strategic intent Organisation A Absorptive capacity Collaboration Inter- organisation interactions Knowledge creation and transfer Organisation B Strategic intent Organisation B Absorptive capacity The business ecosystem

collaborating, the companies and their personnel interact, leading to knowledge creation and transfer. The knowledge creation and transfer are assimilated through the processes of absorptive capacity in each organisation. Knowledge creation, transfer and absorptive capacity are the focus of Chapter 4.

With the conceptual framework as a guidepost, the remainder of this chapter focuses on the business ecosystem and strategic intent. The next section discusses the role of the business ecosystem and its connection to strategising.