Investigating Strategic Renewal of Five Large Dutch Financial Services Firms

57 Pages Posted: 24 Sep 2004

See all articles by Bert Flier

Bert Flier

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Frans A. J. Van Den Bosch

Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship; Erasmus Research Institute of Management (ERIM)

H. W. Volberda

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

Charles Baden‐Fuller

City University, London - Cass Business School; University of Pennsylvania - The Wharton School

Date Written: 29 2004 6,

Abstract

How do large well-established firms renew themselves in an increasing turbulent environment? Is there a generic pattern of change or is each change journey rather idiosyncratic? We posed five questions about the nature of renewal patterns. First, how do firms combine external versus internal initiatives in a trajectory of strategic renewal? Second, how does the balance of competence building and competence leveraging evolve in a trajectory of strategic renewal? Third, what are the sequences of action in a strategic renewal process? Fourth, do firms differ regarding speed of their renewal processes? Finally, do different strategic renewal trajectories give rise to different of similar outcomes? Using a simple framework and new metrics we described and analyzed the strategic renewal journeys of the five largest financial service firms in the Netherlands during the period 1990-1997. We found equifinality in viable trajectories of strategic renewal. In four out of five firms, they result in similar outcomes due to mimetic behaviour. Nonetheless, one firm showed deviant strategic behaviour.

Keywords: strategic renewal, competence building vs. competence leveraging, financial services firms

JEL Classification: M, L20, L1

Suggested Citation

Flier, Bert and Van Den Bosch, Frans A. J. and Volberda, Henk W. and Baden-Fuller, Charles, Investigating Strategic Renewal of Five Large Dutch Financial Services Firms (29 2004 6,). ; Cass Business School Research Paper. Available at SSRN: https://ssrn.com/abstract=594977

Bert Flier

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands
+31 10 408 2533 (Phone)
+31 10 408 9013 (Fax)

HOME PAGE: http://www.fbk.eur.nl/DPT/VG4/MEMBERS/flier.html

Frans A. J. Van Den Bosch

Erasmus University Rotterdam (EUR) - Department of Strategic Management and Entrepreneurship ( email )

RSM Erasmus University
Rotterdam, 3000 DR
Netherlands
+31 10 408 1955/2005 (Phone)
+31 10 453 0137 (Fax)

HOME PAGE: http://www.rsm.nl/fvandenbosch

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Henk W. Volberda (Contact Author)

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands
+31 10 408 2761 (Phone)
+31 10 408 9013 (Fax)

HOME PAGE: http://www.eur.nl/fbk/dep/dep4/faculty_members/Henk_Volberda

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Charles Baden-Fuller

City University, London - Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
219
Abstract Views
1,758
rank
137,555
PlumX Metrics