Probing the Unobtrusive Link: Dominant Logic and the Design of Joint Ventures at General Electric

Strategic Management Journal, Vol. 21, pp. 593-602, 2000

Posted: 11 Jun 2011

See all articles by Joseph Lampel

Joseph Lampel

Alliance Manchester Business School

Jamal Shamsie

Michigan State University - The Eli Broad College of Business and The Eli Broad Graduate School of Management

Date Written: 2000

Abstract

Prahalad and Bettis (1986) have proposed that the successful management of highly diversified firms can be attributed to the concept of a corporate “dominant logic” that guides all of its business units. We argue that dominant logic addresses the problem of balancing the needs of business units against those of the corporation as a whole. We also suggest that the presence of a clear and consistent dominant logic must lead to a high degree of consistency in the strategic moves that are undertaken by each of the business units within the diversified firm. Based on a study of the joint ventures initiated by General Electric between 1984 and 1993, we show that the design of these ventures follows a pattern that is consistent with the presence and influence of dominant logic. Finally, we demonstrate that the early failure of joint ventures can generally be linked to a shift away from this dominant logic.

Keywords: dominant logic, strategic cognition, corporate strategy, joint ventures, GE

Suggested Citation

Lampel, Joseph and Shamsie, Jamal, Probing the Unobtrusive Link: Dominant Logic and the Design of Joint Ventures at General Electric (2000). Strategic Management Journal, Vol. 21, pp. 593-602, 2000, Available at SSRN: https://ssrn.com/abstract=1862793

Joseph Lampel (Contact Author)

Alliance Manchester Business School ( email )

Harold Hankins Building
room 9.21
London, Choose a State M15 6PB
United Kingdom
0161-820-8344 (Phone)

HOME PAGE: http://www.manchester.ac.uk/research/joseph.lampel/furtherinformation

Jamal Shamsie

Michigan State University - The Eli Broad College of Business and The Eli Broad Graduate School of Management ( email )

East Lansing, MI 48824-1121
United States
517-432-3518 (Phone)

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