Swipe to navigate through the articles of this issue
Companies need to constantly renew themselves to remain competitive in rapidly changing market environments, regardless of their size or age. Even though strategic renewal is a crucial factor for sustainable success of organizations, it is only an emergent area in literature. This article examines potential antecedents of strategic renewal and impact on firm performance. Based on 104 companies’ responses to a structured questionnaire, the empirical findings demonstrate that strategic renewal positively impacts firm performance, and that entrepreneurial orientation and organizational learning are antecedents. From a practical managerial viewpoint, our results suggest that firms following a strategic renewal approach can increase the long-term success of their organizations: Firms that are entrepreneurially oriented and willing to learn can successfully manage strategic renewal.
Please log in to get access to this content
To get access to this content you need the following product:
Agarwal, R., & Helfat, C. E. (2009). Strategic renewal of organizations. Organization Science, 20(2), 281–293. CrossRef
Argyris, C., & Schön, D. A. (1978). Organizational learning: a theory of action perspective. Reading, MA: Addison-Wesley.
Baden-Fuller, C., & Volberda, H. W. (1997). Strategic renewal: how large complex organizations prepare for the future. International Studies of Management & Organization, 27(2), 95–120. CrossRef
Baker, W. E., & Sinkula, J. M. (1999). The synergistic effect of market orientation and learning orientation on organizational performance. Journal of the Academy of Marketing Science, 27(4), 411–427. CrossRef
Binns, A., Harreld, J. B., O’Reilly III, C., & Tushman, M. L. (2014). The art of strategic renewal. Sloan Management Review, 55(2), 21–23.
Boeker, W. (1989). Strategic change: the effects of founding and history. Academy of Management Journal, 32(3), 489–515.
Bouncken, R. B., Pesch, R., & Kraus, S. (2015). SME innovativeness in buyer–seller alliances: effects of entry timing strategies and inter-organizational learning. Review of Managerial Science, 9(2), 361–384.
Bouncken, R. B., Plüschke, B. D., Pesch, R., & Kraus, S. (2016). Entrepreneurial orientation in vertical alliances: joint product innovation and learning from allies. Review of Managerial Science, 10(2), 381–409. CrossRef
Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002). Learning orientation, firm innovation capability, and firm performance. Industrial Marketing Management, 31(6), 515–524. CrossRef
Chakravarthy, B., & Gargiulo, M. (1998). Maintaining leadership legitimacy in the transition to new organizational forms. Journal of Management Studies, 35(4), 437–456. CrossRef
Covin, J. G., & Miles, M. P. (1999). Corporate entrepreneurship and the pursuit of competitive advantage. Entrepreneurship: Theory & Practice, 23(3), 47–63.
Covin, J., & Slevin, D. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(11), 75–87. CrossRef
Covin, J. G., & Wales, W. J. (2012). The measurement of entrepreneurial orientation. Entrepreneurship: Theory & Practice, 36(4), 677–702.
Crossan, M. M., & Berdrow, I. (2003). Organizational learning and strategic renewal. Strategic Management Journal, 24(11), 1084–1105. CrossRef
Crossan, M. M., & Hurst, D. K. (2006). Strategic renewal as improvisation: reconciling the tension between exploration and exploitation. Advances in Strategic Management, 23, 273–298.
Crossan, M. M., Lane, H. W., & White, R. E. (1999). An organizational learning framework: from intuition to institution. Academy of Management Review, 24(3), 522–537. CrossRef
De Geus, A. (1997). The living company. Boston, MA: Harvard Business School Press.
Dess, G. G., & Lumpkin, G. T. (2005). The role of entrepreneurial orientation in stimulating effective corporate entrepreneurship. Academy of Management Executive, 19(1), 147–156.
Fernandes, C., Ferreira, J., & Raposo, M. (2013). Drivers to firm innovation and their effects on performance: an international comparison. International Entrepreneurship and Management Journal, 9(4), 557–580. CrossRef
Floyd, S. W., & Lane, P. J. (2000). Strategizing throughout the organization: managing role conflict in strategic renewal. Academy of Management Review, 25(1), 154–177. CrossRef
Gupta, R., & Pandit, A. (2012). Strategic entrepreneurial orientation: development of a multi-dimensional construct based on literature review. South Asian Journal of Management, 19(4), 89–110.
Guth, W. W., & Ginsberg, A. (1990). Guest editors’ introduction: corporate entrepreneurship. Strategic Management Journal, 11(5), 5–15.
Hakala, H. (2011). Strategic orientations in management literature: three approaches to understanding the interaction between market, technology, entrepreneurial and learning orientations. International Journal of Management Reviews, 13(2), 199–217. CrossRef
Hannan, M. T., & Freeman, J. (1984). Structural inertia and organizational change. American Sociological Review, 49(2), 149–164. CrossRef
Harms, R., Reschke, C. H., Kraus, S., & Fink, M. (2010). Antecedents to innovation and growth: analyzing the impact of entrepreneurial orientation and goal-oriented management. International Journal of Technology Management, 52(1/2), 135–152. CrossRef
Haveman, H. A. (1993). Organizational size and change: diversification in the savings and loan industry after deregulation. Administrative Science Quarterly, 38(1), 20–50. CrossRef
Hitt, M. A., & Reed, T. S. (2000). Entrepreneurship in the new competitive landscape. In G. D. Meyer & K. A. Heppard (Eds.), Entrepreneurship as strategy (pp. 23–48). Thousand Oaks, CA: Sage.
Huff, J. O., Huff, A. S., & Thomas, H. (1992). Strategic Renewal and the Interaction of Cumulative Stress and Inertia. Strategic Management Journal, 13(Summer Special Issue), 55–75. CrossRef
Hughes, M., & Morgan, R. E. (2007). Deconstructing the relationship between entrepreneurial orientation and business performance at the embryonic stage of firm growth. Industrial Marketing Management, 36(5), 651–661. CrossRef
Ireland, D. R., & Webb, J. W. (2007). Strategic entrepreneurship: creating competitive advantage through streams of innovation. Business Horizons, 50(1), 49–59. CrossRef
Isabella, L. A. (1992). Managing the challenges of trigger events: the mindsets governing adaptation to change. Business Horizons, 35(5), 59–66. CrossRef
Jansen, J. J. P., Van Den Bosch, F. A. J., & Volberda, H. W. (2006). Exploratory innovation, exploitative innovation, and performance: effects of organizational antecedents and environmental moderators. Management Science, 52(11), 1661–1674. CrossRef
Jones, O., & Macpherson, A. (2006). Inter-organizational learning and strategic renewal in SMEs: extending the 4I framework. Long Range Planning, 39(2), 155–175. CrossRef
Keil, T. (2002). External corporate venturing: strategic renewal in rapidly changing industries. Westport, CT: Quorum.
Kim, H. E., & Pennings, J. M. (2009). Innovation and strategic renewal in mature markets: a study of the tennis racket industry. Organization Science, 20(2), 368–383. CrossRef
Kohtamäki, M., Kautonen, T., & Kraus, S. (2010). Strategic planning and small business performance an examination of the mediating role of exploration and exploitation behaviours. International Journal of Entrepreneurship and Innovation, 11(3), 221–229. CrossRef
Kraus, S., Kauranen, I., & Reschke, C. H. (2011). Identification of domains for a new conceptual model of strategic entrepreneurship using the configuration approach. Management Research Review, 34(1), 58–74.
Kraus, S., Rigtering, C., Hughes, M., & Hosman, V. (2012). Entrepreneurial orientation and the business performance of SMEs: a quantitative study from the Netherlands. Review of Managerial Science, 6(2), 161–182. CrossRef
Kreiser, P. M., Marino, L., Davis, J., Tang, Z., & Lee, C. (2010). Firm-level entrepreneurship: the role of proactiveness, innovativeness and strategic renewal in the creation and exploration of opportunities. Journal of Developmental Entrepreneurship, 15(2), 143–163. CrossRef
Kropp, F., Lindsay, N. J., & Shoham, A. (2006). Entrepreneurial, market, and learning orientations and international entrepreneurial venture performance in south African firms. International Marketing Review, 23(5), 504–523. CrossRef
Kuratko, D. F., & Audretsch, D. B. (2009). Strategic entrepreneurship: exploring different perspectives of an emerging concept. Entrepreneurship: Theory & Practice, 33(1), 1–17.
Kwee, Z., Van Den Bosch, F. A. J., & Volberda, H. W. (2011). The influence of top management Team’s corporate governance orientation on strategic renewal trajectories: a longitudinal analysis of Royal Dutch Shell plc, 1907–2004. Journal of Management Studies, 48(5), 984–1014. CrossRef
Li, Y.-H., Huang, J.-W., & Tsai, M.-T. (2009). Entrepreneurial orientation and firm performance: the role of knowledge creation process. Industrial Marketing Management, 38(4), 440–449. CrossRef
Liu, S. S., Luo, X., & Shi, Y.-Z. (2002). Integrating customer orientation, corporate entrepreneurship, and learning orientation in organizations-in-transition: an empirical study. International Journal of Research in Marketing, 19(4), 367–382. CrossRef
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135–172. CrossRef
Maijanen, P., & Jantunen, A. (2014). Centripetal and centrifugal forces of strategic renewal: the case of the Finnish broadcasting company. The International Journal on Media Management, 16(3–4), 139–159. CrossRef
March, J. G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 71–87. CrossRef
McGuinness, T., & Morgan, R. E. (2005). The effect of market and learning orientation on strategy dynamics: the contributing effect of organisational change capability. European Journal of Marketing, 39(11/12), 1306–1326. CrossRef
Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770–791. CrossRef
Mische, A. (2000). Strategic renewal: becoming a high-performance organization. Upper Saddle River, NJ: Prentice Hall.
Murphy, G. B., Trailer, J. W., & Hill, R. C. (1996). Measuring performance in entrepreneurship research. Journal of Business Research, 36(1), 15–23. CrossRef
Pérez López, S., Montes Peón, J. M., & Vazquez Ordás, C. J. (2005). Organizational learning as a determining factor in business performance. The Learning Organization, 12(3), 227–245. CrossRef
Poskela, J., & Martinsuo, M. (2009). Management control and strategic renewal in the front end of innovation. Journal of Product Innovation Management, 26(6), 671–684. CrossRef
Quigley, T. J., & Hambrick, D. C. (2012). When the former CEO stays on as board chair: effects of successor discretion, strategic change, and performance. Strategic Management Journal, 33(7), 834–859. CrossRef
Ravasi, D., & Lojacono, G. (2005). Managing design and designers for strategic renewal. Long Range Planning, 38(1), 51–77. CrossRef
Rhee, J., Park, T., & Lee, D. H. (2010). Drivers of innovativeness and performance for innovative SMEs in South Korea: mediation of learning orientation. Technovation, 30(1), 65–75. CrossRef
Rigtering, C., Kraus, S., Eggers, F., & Jensen, S. H. (2014). A comparative analysis of the entrepreneurial orientation/growth relationship in service firms and manufacturing firms. Service Industries Journal, 34(4), 275–294. CrossRef
Sáez-Martínez, F. J., & González-Moreno, Á. (2011). Strategic renewal, cooperation, and performance: a contingency approach. Journal of Management and Strategy, 2(4), 43–55. CrossRef
Semrau, T., Ambos, T. C., & Kraus, S. (2016). Entrepreneurial orientation and SME performance across societal cultures. Journal of Business Research, 69(5), 1928–1932.
Shamsie, J., Martin, X., & Miller, D. (2009). In with the old, in with the new: capabilities, strategies, and performance among the Hollywood studios. Strategic Management Journal, 30(13), 1440–1452. CrossRef
Sharma, P., & Chrisman, J. J. (1999). Toward a reconciliation of the definitional issues in the field of corporate entrepreneurship. Entrepreneurship: Theory & Practice, 23(3), 11–27.
Sinkula, J. M., Baker, W. E., & Noordewier, T. (1997). A framework for market-based organizational learning: linking values, knowledge, and behavior. Journal of the Academy of Marketing Science, 25(4), 305–318. CrossRef
Spector, B. (2007). Implementing organizational change: theory and practice. Upper Saddle River, NJ: Prentice Hall.
Stadler, C. (2007). The four principles of enduring success. Harvard Business Review, 85(7/8), 62–72.
Stienstra, M. (2008). Strategic Renewal in Regulatory Environments (doctoral dissertation). Rotterdam: Erasmus University.
Tsang, E. W. K. (1997). Organizational learning and the learning organization: a dichotomy between descriptive and prescriptive research. Human Relations, 50(1), 73–89.
Volberda, H. W., Baden-Fuller, C., & Van Den Bosch, F. A. J. (2001). Mastering strategic renewal: Mobilising renewal journeys in multi-unit firms. Long Range Planning, 34(2), 159–178. CrossRef
Wales, W. J., Gupta, V. K., & Mousa, F.-T. (2013). Empirical research on entrepreneurial orientation: an assessment and suggestions for future research. International Small Business Journal, 31(4), 357–383. CrossRef
Wang, C. L. (2008). Entrepreneurial orientation, learning orientation, and firm performance. Entrepreneurship: Theory & Practice, 32(4), 635–657.
Weinzimmer, L. G., Robin, J., & Michel, E. J. (2012). The measurement of strategic orientation and its efficacy in predicting financial performance. Journal of Business Strategies, 29(2), 81–98.
Wielemaker, M. W., Elfring, T., & Volberda, H. W. (2000). Strategic renewal in large European firms: investigating viable trajectories of change. Organization Development Journal, 18(4), 49–68.
Wiklund, J. (1999). The sustainability of the entrepreneurial orientation–performance relationship. Entrepreneurship: Theory & Practice, 24(1), 37–48.
Wolff, J. A., Pett, T. L., & Ring, J. K. (2015). Small firm growth as a function of both learning orientation and entrepreneurial orientation: an empirical analysis. International Journal of Entrepreneurial Behavior & Research, 21(5), 709–730. CrossRef
Zahra, S. A. (1996). Governance, ownership, and corporate entrepreneurship: the moderating impact of industry technological opportunities. Academy of Management Journal, 39(6), 1713–1735.
- To change or not to change–antecedents and outcomes of strategic renewal in SMEs
- Publication date
- Springer US
International Entrepreneurship and Management Journal
Print ISSN: 1554-7191
Electronic ISSN: 1555-1938
Neuer Inhalt/© Stellmach, Neuer Inhalt/© Maturus, Pluta Logo/© Pluta