Semantic scholar extracted view of strategy, structure, and economic performance by richard p. Richard rumelt and kate rumelt, 2011 richard post rumelt born november 10, 1942 is an american organizational theorist, and emeritus professor at the ucla anderson school of management, known for his work in the field of strategy, strategic planning, strategic management, and strategy dynamics. Strategy, structure, and economic performance by richard p. However, before moving into them, best to go ahead and lay out how corporate strategy is described.
Rumelt used four major and nine minor categories to characterize the diversification strategy of firms. Strategy, structure, and economic performance rumelt, richard p. A subsample of 128 firms from rumelts 1974 study was updated and. Download citation strategy, structure, and economic performance. Rumelt 1974 extended this argumenttoexamineperformanceimplications. He is noted for having made several key contributions to the study of business and corporate strategy. Strategy, structure, and economic performance in searchworks. Revisiting the strategy, structure, and performance paradigm. Rumelt 1974 further expanded on chandlers work in a study of the financial. Suzuki, 1980, titles that variations in firm strategy will cause changes within the. Strategy structure and economic performance rumelt 1974 pdf. Richard p rumelt published in 1974 in boston mass by harvard university graduate school of business administration.
Session 16 1231 corp diversification 22 empirical studies rumelt r p 1974 from ib 724d9210 at national taiwan university. Stank department of marketing and logistics, the university of tennessee. Rumelt rp 1974 strategy structure and economic performance. On the subject of the relationship between structure and strategy and their influence on performance, the more wellknown hypothesis proposed by chandler 1962, confirmed by other researches hamilton and shergill, 1992. Linked supply chain strategy and structure to improved performance outcomes. Rumelt received his doctorate from the harvard business school in 1972. The english word derived from it, strategy, was transferred from its military origins to the business world in the years before the ubiquitous mba, at a time when a military career was considered. The ones marked may be different from the article in the profile. Strategy structure and economic performance rumelt 1974 pdf economic performance, division of research.
Diversification strategy versus market structure h. This paper incorporates both diversification strategy and market structure variables in a study of corporate economic performance. Strategy, structure, and economic performance agris. This change is owed to the increased use of economics by strategy scholars and to.
His 1974 study of diversification strategy inaugurated a stream of work on the performance implications of diversification. Division of research, graduate school of business administration, harvard, 1974. Strategy, structure, and economic performance semantic. Changes dont come along in nice annual packages, so the need for strategy work is episodic, not necessarily annual.
Suzuki, 1980, titles that variations in firm strategy. Strategy, structure and performance in india journal of. Nonlinear effect between diversification and corporate performance from the perspective of tmt faultlines. On the other hand, similar to findings of rumelt 1974, a significant relationship was shown to exist between an rc strategy and high performance. Strategy, structure, and economic performance, boston, ma. Chapter 6 strategy at the corporate level management of strategy concepts and cases slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Correlationbased diversification and firm performance. Nov 30, 2017 in a canadian study the locus of control of top executives was found to bear a direct and significant relationship to the nature of corporate strategy but an indirect relationship to environment and to structure. Boston, division of research, graduate school of business administration, harvard university, 1974. An exploration of external environmental scanning and the.
Rumelt rp 1974 strategy, structure, and economic performance. Rumelt, strategy, structure and economic performance cambridge, massachusetts. Performance in 1974 represented a watershed in the study of diversification. A hallmark of true expertise and insight is making a complex subject understandable client to consultant. Ebook pdf, epub or in browserthe strategy structure performance ssp paradigm has developed a central role within strategy. Bird professor of history university of maine, orono every decade or so a seminal work seems to appear in our field of. Revisitingthestrategy,structure,andperformance paradigm.
Nov 30, 2017 the same strong linkage between strategy and structure found in earlier studies using samples of large companies is found within a sample of 40 manufacturing companies in electrical engineering in the united kingdom, ranging in size from 3517,000 employees. Strategy, structure, and economic performance book, 1974. Strategies and structures for diversification academy of. Inhisstudy of 246 large industrial corporations, he found that. Diversification, systematic risk, and shareholder return. A subsample of 128 firms from rumelts 1974 study was upd.
Corp diversification 22 empirical studies rumelt r p 1974. Department of business administration and management technology lagos state university, ojo lagos, nigeria. Corporate author harvard university corporate author graduate school of business administration. So i am paying you to ask me questions consultant to client.
A subsample of 128 firms from rumelt s 1974 study was upd. This cited by count includes citations to the following articles in scholar. Pdf strategic management and economics dan schendel. For these three doyens of strategy, alfred chandler was a fundamental influence on the shape of the strategicmanagement discipline that emerged in the 1960s and 1970s. Effects of product market diversification strategy on corporate financial performance and growth. Nov 22, 2011 rumelt is a longtime strategy professor at ucla, and before that at harvard business school, where he wrote a landmark work of scholarship and empirical rigor, strategy, structure, and economic performance harvard university press, 1974, which was based on his prizewinning doctoral dissertation.
Strategy, structure, and economic performance of the fortune 500 boston. This study reexamined the performance outcome of diversification strategies by combining the advantages of securitymarketbased measures and rumelt s classification scheme. First, building on the earlier work of wrigley 1970, he developed a ninecategory measure of diversification strategy. Specialization versus diversification in eu economies.
Harvard business school, boston, 1974, revised edition published. Harvard university press, cambridge, massachusetts, 1974, p. How to do a rumelt evaluation method your business. More internal chief executives tended to pursue more productmarket innovation, undertake greater risks, and lead rather than follow competitors. Strategy, structure, and economic performance richard p. Top executive locus of control and its relationship to. The evaluation of business strategy by richard rumelt strategy can neither be formulated nor adjusted to changing circumstances without a process of strategy evaluation. This book, which is rumelts 1973 harvard dissertation in book form, is truly. Further, it was observed that diversified firms are performing better irrespective of their degree of diversification if performance is measured in terms of accounting variables return on asset and return on equity.
Ijlm applying the strategystructure performance paradigm to. Research methodology strategies in strategic management 107 a good theory in strategic management must meet the criteria of being uniqueness, parsimony, conservation, generalizability, fecundity, internal consistency, empirical riskiness, and abstraction. Rumelt s book, strategy, structure, and economic peiformance in 1974 represented a watershed in the study of diversification strategy. Rumelt rp 1974 strategy structure and economic performance boston ma harvard from ba p82 at universita di roma tor vergata. This paper studies the strategy and structure in the top 100 companies in india. Rumelt, r 1974 strategy, structure and economic performance division of research, harvard business school boston sharma, b 1997 strategies for competitiveness in the australian manufacturing industry unpublished doctoral dissertation university of technology sydney. A subsample of 128 firms from rumelts 1974 study was updated and utilized to investigate the possibility that market structure. See also the evaluation by spender, jason, business policy and strategy. Effects of product market diversification strategy on. Strategy, structure, and economic performance ghent. Performance in 1974 represented a watershed in the study of.
Jan 16, 2014 a rumelt perpsective on good strategy 1. If you continue browsing the site, you agree to the use of cookies on this website. Rumelts book, strategy, structure, and economic peiformance in 1974 represented a watershed in the study of diversification strategy. Diversification strategy versus market structure christensen, h. With his work structure follows strategy, chandler demonstrated the relevance of business history and ensured that it would become part of educational programs in many universities. Among other results, the correlation between company size and each of strategy and structure was found to be stronger than that between. The results showed no significant relationship between a dc diversification strategy and high performance rumelt, 1982, p. Rumelt rumelt was a founding member of the strategic management society and served as its president in 199598. Abstract this paper incorporates both diversification strategy and market structure variables in a study of corporate economic performance. Academy of management best papers proceedings 1992. An occasion for despair, a retreat to disciplinary specialisation or for new excitement. Ebook pdf, epub or in browserthe strategystructureperformance ssp paradigm has developed a central role within strategy.
Using the data from 1974 1977, rumelt s research followed methods introduced by schmalensee 1985 and partitioned the total. Kurt christensen krannert graduate school of management, purdue university, west lafayette, indiana u. Specifically, firms that diversified in a constrained manner demonstrated. Following the seminar work of chandler, strategy and structure research has made a lot of progress and is one of the major research issues in strategy.
Imprint boston, division of research, graduate school of business administration, harvard university. Strategy, structure, and economic performance hardcover october, 1974. Strategy, structure, and economic performance 1974. Applying the strategy structure performance paradigm to the supply chain environment c. This analysis is applied both to eu countries and to economic system branches, focusing the analysis on the challenges facing agriculture and food and beverage industry. This book was rumelts doctoral dissertation rumelt 1974. Strategy and structure alignment at barclays bank of kenya. Illinich, complex patterns of vertical integration in the forest products industry, academy of management journal 35 1992. The findings underscore the popular, though weakly supported, belief that controlled diversity is associated with the highest performance. Corporate author harvard university corporate author.
The rumelt evaluation method is a type of business strategy evaluation, which is a systematic analysis of a business strategy to assess alignment with organizational interests as well as gauge effectiveness and efficiency of the business strategy under evaluation. Imprint boston, division of research, graduate school of business administration. Strategy, structure, and economic performance 1974 agris. Richard rumelt, dan schendel, and david teece are clear. He joined the ucla rumelt s research has centered on corporate diversification strategy and the sources of sustainable advantage to individual business strategies. The foundation of strategic management as a field may very well be traced to the 1962 publication of chandlers strategy and structure. Strategy, structure, size and bureaucracy academy of. Strategy and structure of german enterprise doctoral dissertation, harvard business school, 1972. Building on the work of chandler, wrigley, and others, rumelt 1974, 1977 investigated the relationships among diversification strategy, organizational structure, and economic performance.
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