The transformation of elite paths and profiles

For decades scholars have posed questions concerning the attributes of individuals who make space for themselves at the top of elite circles. Recently, Cappelli and Hamori (2004; 2005) generated interesting results about the changes affecting the routes to senior executive positions in US business organizations between 1980 and 2001.4 They collected information about demographical

Corporate elite dynamics and the concept of power

1. Mechanisms of elite formation Scholars grappling with the conceptual dynamics of the notion of power need to investigate the contemporary dynamics of elite production and its relationship with the meaning of elitism and pluralism in organizations (and more broadly in Western societies, with all their institutional specificities). Given that holders of key positions

The Futures of Power: Models of analysis

Bauman (in Bauman and Tester 2001: 40) suggests that neither experience nor knowledge of it comes divided into tightly sealed compartments. Although he was not writing about organization and management theory, we think his remarks, which seem to echo those of Alfred North Whitehead (1925) on the ‘fallacy of mis- placed concreteness’, are applicable

The Futures of Power: The end of history

Some readers may recall, or have read about, those heady days when history allegedly ended, as the Berlin Wall collapsed.1 When the wall came down it seemed to many observers as if, with the end of communism – at least in Europe – the only threat to existing democratic political power was vanquished. Liberal,

The Futures of Power- Shrinking space: eclipsing time

1. Extending business globally What made contemporary globalization possible, in part, was the virtual capillar- ies of instantaneous communication and trade embedded in the Internet. By the 1990s much of the focus of organization theories had shifted to the emancipatory possibilities of new virtual technologies potentially rendering hierarchy and bureaucracy redundant (see Clarke and

The Futures of Power After 9/11

1. From a risk society to a state of insecurity For a while, until at least the attack of February 26, 1993 on the World Trade Center, it might have seemed as if the old matters of identity were hardly of any concern. After the second more successful attack of 9/11 few could think

Elites in a shrinking space and an expanding state of insecurity

Who then, are the elites? They are those who are generated by dominant rela- tions as the authorities governing various circuits of power. They control the nodal points through which legitimacy flows. Some node occupants are born; others are made; and some succeed on merit. Origins are of diminishing importance in a society of

Frameworks with which to think about the futures of power

The importance of the macro-political developments and their likely effect on the futures of power in organizations is that the futures of power will be largely depen- dent on the magnitude of the changes that are affecting and will affect the orga- nizational world over the next few decades. In this book we have

Introduction to Hypercompetition

1. HYPERCOMPETITION While cost and quality, timing and know-how, strongholds, and deep pockets have always played a role in competition, the difference today is the speed and aggressiveness of interaction in these arenas. Part I of the book will examine patterns of interactions in each arena and show how they have taken on an

New ways of thinking about competitive advantage

1. Every Advantage Is Eroded The pursuit of a sustainable advantage has long been the focus of strategy. But advantages last only until competitors have duplicated or out- maneuvered them. As will be seen in the discussions of Part I, protecting advantages has become increasingly difficult. Once the advantage is cop­ied or overcome, it

Old ways of thinking about competitive advantage

To be effective in times of change, strategy must look to an industry’s fu-ture. It must provide an understanding of possible moves and counter-moves of rivals and offer a map of where the interactions between compet, itors might be headed. This requires a dynamic view of strategy. Static models of strategy provide an invaluable

Beyond static competitive advantage

The theories of strategy and competitive advantage described above have been helpful in focusing the attention of managers and researchers on stra­tegic decisions. But have they enabled managers to improve their strategic viability? As Gary Hamel and C. K. Prahalad note, strategy, as it is cur­rently practiced, may be a distraction from real strategic

The big picture: Escalation ladders and hypercompetition

1. Two Types of Escalation Research of the trajectories within each arena of competition reveals two types of escalation. The first is the escalation within each arena. As outlined in the discussion of trends in each arena, moves lead to counter­moves, and the competition continues to escalate. Firms move to higher and higher levels

New rules for hypercompetition: The new 7-s’S

In hypercompetition success depends on developing a series of new advan, tages that disrupt (not sustain) the status quo and that cope with other firms trying to disrupt the status quo. But what is it that allows companies to rapidly and continuously identify and develop new advantages? What is it that allows them to

Traditional views of cost-quality advantages

Cost and quality are the staples of competitive positioning. As discussed, Porter identified three generic strategies based on cost and quality advan­tages: overall cost leadership, differentiation, and focus strategies.1 The cost-leadership strategy involves offering a mass-marketed, low-priced, low-quality product. The differentiation strategy involves offering a pre­mium-priced, high-quality good, and the focus strategy targets a

Dynamic strategic interactions and the escalation ladder

We begin this chapter with the most primitive of all economic situa­tions—the case where two companies make the same product ( with the same quality) and thus are forced to compete on price. We see how this simple situation escalates into price wars, then differentiated markets, then full-line producers, and then niche strategies, as

Beyond cost and quality: no product positioning advantage is sustainable

Sometimes, when this point of ultimate value is reached, firms may tum to one of two strategies that abandon the market because the market seems too competitive to be profitable. Product-line extensions: Just as service can enhance product quality, companies can also add new products to fill in excess distribution ca­pacity. For example, McDonald’s

Hypercompetitive behavior in the cost-quality arena

Hypercompetitive firms attempt to (1) stay ahead of competitors who are attempting to catch up to or overtake them on the escalation ladder and (2) slow down competitors’ efforts to overtake them without slowing down their own advancement up the escalation ladders. These hypercompetitive actions are efforts to avoid perfect competition (where no one

Traditional views of timing and know-how advantages

The Hoffmann,LaRoche and Wang examples illustrate that arriving first to market can give a company a substantial advantage. If the first,mover firm arrives long before competitors, it may be the only seller of a product or provider of a service, allowing it to charge a premium because of its status as a monopolist. In

Timing-based strategies and dynamic strategic interaction

The timing of a firm’s rents and cash outflows depends upon the timing of its competitors’ movements into new markets and the timing of the firm’s own development of new technology and other know-how. This often de­pends upon whether firms choose to make revolutionary or evolutionary product changes. Moreover, the timing of the rents