Strategic Renewal of European Financial Incumbents; Coevolution of Environmental Selection, Institutional Effects, and Managerial Intentionality


Bert Flier
Bert Flier
  • Speaker
Rotterdam School of Management (RSM), Erasmus University Rotterdam

Event Information

Type
PhD Defence
Programme
Strategy (- 2009)
Date
Thu. 11 Dec. 2003
Contact
Time
13.30-14.30 hours
E-mail
Location
Senaatszaal, Woudestein
Number


Abstract

How do incumbent firms and environments coevolve and how are firm-level adaptation and selection at industry level interrelated? Can and do large established organizations renew themselves to adapt to their environment? We develop propositions based on three single-lens theories that relate to environmental selection, institutional theory, managerial intentionality, and to the coevolutionary perspective to investigate strategic renewal of incumbent firms. We distinguish between three dimensions of strategic renewal to develop metrics to investigate our propositions in a multi-level, multi-country, longitudinal study of the European financial services industry.The results provide the following insights. From an environmental selection perspective, we find incumbents have a preference for exploitation renewal actions. Country institutional environments appear to explain to what extent incumbents prefer internal and/or external renewal actions. Managerial intentionality seems to explain outlier behaviour and firm-specific frequency and timing of renewal actions. From a coevolutionary perspective, interaction effects contribute to explain deviations from predictions derived from the single-lens theories applied in this thesis.

Charles Baden-Fuller
Charles Baden-Fuller
  • Member Doctoral Committee
Arie Lewin
Arie Lewin
  • Member Doctoral Committee
Rudy Martens
Rudy Martens
  • Member Doctoral Committee