1. presentation of scientific papers
seminar: strategy-as-pratice
»intraorganizational ecology of strategy«
University of Zurich
23rd of September, 2010
A. Schwarzinger
Boris Morgounovski
Burgelman, 1991.
Page 1
Presentation and Discussion
of scientific papers in the field of
Strategy-as-Pratice
University of Zurich
Seminar in Strategy-as-Pratice
23rd of September, 2010
Andreas Schwarzinger
Boris Morgounovski

2. »What it‘s all about?«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
Agenda.
A. Schwarzinger
Boris Morgounovski
Page 2
» main message of the paper
» research question(s) & purpose
» the Intel field study
» ecology of strategy making
» summary & propositions
» discussion

3. »What it‘s all about?«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
Agenda.
A. Schwarzinger
Boris Morgounovski
Page 3
» main message of the paper
» research question(s) & purpose
» the Intel field study
» ecology of strategy making
» summary & propositions
» discussion

4. »lessons learnt«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
main message of the paper
A. Schwarzinger
Boris Morgounovski
Page 4
main
message » Successful Organizations are characterized by
»
research
questions
» top management who spends efforts on building the
induced and autonomous strategic processes
& purpose
»
Intel
field study
» top management who is concerning with the content of
strategy
»
ecology of
strategy
making
» The fact that they exercise induced and autonomous
processes
»
summary &
propositions
» Successful reorientations in organizations are effected
»
by autonomous process and internal experimentation
discussion

5. »What it‘s all about?«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
Agenda.
A. Schwarzinger
Boris Morgounovski
Page 5
» main message of the paper
» research question(s) & purpose
» the Intel field study
» ecology of strategy making
» summary & propositions
» discussion

6. »any questions?«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
research questions of the paper
A. Schwarzinger
Boris Morgounovski
Page 6
main
message » The paper addresses strategic research questions from
the evolutionary theory
»
research
questions
& purpose
» Strategy Content and Strategic Process
»
Intel
» How does the content of an organization’s strategy come about
field study
and how does it evolve?
»
ecology of » How do strategy making processes take shape over time?
strategy
making
» Does any connection between strategy-making processes and
»
different forms of organizational change and adoption exist?
summary &
propositions
» What sorts of strategy making processes lead to major strategic
»
change that is the best option?
discussion

7. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us?«
purpose of the paper
A. Schwarzinger
Boris Morgounovski
Page 7
main
message » Two main purposes of the paper
»
research
questions
» Show the usefulness of an intraorganizational
ecological perspective on strategy making
& purpose
»
Intel » Includes selection, variation and retention
field study
» Patterned links between the intraorganizational
»
ecology of
strategy ecological process and different forms of adaptation in
making
the context of strategic change
»
summary &
propositions
»
discussion

8. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us?«
research framework
A. Schwarzinger
Boris Morgounovski
Page 8
Induced Strategic Process
within the scope of the organization’s current strategy
main
message
»
research
questions
& purpose Variation Selection Retention
»
» Random variation » Works through » Takes the form of
administrative and organizational
Intel
field study
» Strategic initiatives cultural level learning and
seeking for new mechanisms distinctive
»
opportunities, may competence (i. e.
ecology of
come from in- or » Regulation of shared views of
strategy outside the scope resources to organizational
making
of the strategy different areas of character,
»
strategic initiatives organizational goal
definition)
summary &
propositions
»
discussion
Autonomous Strategic Process
outside the scope of the organization’s current strategy

9. »What it‘s all about?«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
Agenda.
A. Schwarzinger
Boris Morgounovski
Page 9
» main message of the paper
» research question(s) & purpose
» the Intel field study
» ecology of strategy making
» summary & propositions
» discussion

10. »examples?«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
purpose of the Intel field study
A. Schwarzinger
Boris Morgounovski
Page 10
main
message Understand Intel’s Evolution
»
from a memory company
research
questions
to “microcomputer” company
& purpose
»
Intel
field study
Understand Intel’s
Strategic and Decision making Process
»
ecology of
after 1985 (CISC, EPROM, ASISC…):
strategy
making
»
summary &
propositions
»
discussion

11. »examples?«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
introduction to the Intel field study
A. Schwarzinger
Boris Morgounovski
Page 11
main
message
»
research
questions
& purpose
»
Intel
field study
»
ecology of
strategy
making
»
summary &
propositions
»
discussion

12. »examples?«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
introduction to the Intel field study
A. Schwarzinger
Boris Morgounovski
Page 12
main
message
» From 1968 to 1989 the company grew from one million
dollars to three billion dollars (profits from a loss of two
»
research
questions
million dollars to 453 million dollards in 1988)
& purpose
» 1985: price competition, large cyclical downturn (loss in
»
Intel
1986 of 100 million dollars)
field study
» Need for new investments of 100 million dollards if the
»
ecology of
strategy company wanted to remain competitive in so-called DRAMS
(Dynamic Random Access Memory)
making
»
summary &
propositions
»
discussion After many discussions, top management
decided to exit from the DRAM market

13. »any data to proof that?«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
data used in the Intel field study
A. Schwarzinger
Boris Morgounovski
Page 13
main » Archival data collection and interviews carried from August
88 to October 1989
message
»
research
questions
» Company documents and publications describing Intel’s
& purpose
story were analyzed
»
» 2o of Intel’s key managers were interviewed , some of them
Intel
field study repeatedly
»
» First stage in research: broad examination of how Intel’s
ecology of
strategy strategy changed from being a “memory company” to
making
being a microprocessor company
»
summary &
» Second stage: Focus on the events since 1985 especially
propositions
»
discussion

14. »What it‘s all about?«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
Agenda.
A. Schwarzinger
Boris Morgounovski
Page 14
» main message of the paper
» research question(s) & purpose
» the Intel field study
» ecology of strategy making
» summary & propositions
» discussion

15. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us«
framework developed within the paper
A. Schwarzinger
Boris Morgounovski
Page 15
Intraorganizational Ecology of Strategy Making
and Organizational Adaption
main
message
»
Variation Selection Retention Organizational
research
questions
Adaption
& purpose
»
Intel
field study
Induced
»
strategic
processes
ecology of
strategy
making
»
Autonomous
summary &
propositions strategic
processes
»
discussion

16. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us«
framework developed within the paper
A. Schwarzinger
Boris Morgounovski
Page 16
Intraorganizational Ecology of Strategy Making
and Organizational Adaption
main
message
»
Variation Selection Retention Organizational
research
questions
Adaption
& purpose
»
Intel
field study
Induced
»
strategic
processes
ecology of
strategy
making
»
Autonomous
summary &
propositions strategic
processes
»
discussion

17. »in detail«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
induced strategic process - retention
A. Schwarzinger
Boris Morgounovski
Page 17
Theory Intel Case Study
main
message
Role of top management Intel’s main success factors
»
research
» Clear articulation of the » Understanding the technology
questions strategy for the secure (“silicon”)
& purpose
continued survival, based on
»
»
past learnings R&D: Process technology was
the driver for the memory
Intel » Organizational strategy is business
field study
expressed in rules and
prescriptions which guide » “Manufacturing prowess”
»
strategic action and induce
ecology of
strategy strategic initiatives at lower » Small business teams
making levels of the hierarchy
» Fundamental transformations
»
of the computer industry were
summary &
not realized by the founders,
propositions they only saw new
entrepreneural opportunities
»
discussion

18. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us«
framework developed within the paper
A. Schwarzinger
Boris Morgounovski
Page 18
Intraorganizational Ecology of Strategy Making
and Organizational Adaption
main
message
»
Variation Selection Retention Organizational
research
questions
Adaption
& purpose
»
Intel
field study
Induced
»
strategic
processes
ecology of
strategy
making
»
Autonomous
summary &
propositions strategic
processes
»
discussion

19. »in detail«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
induced strategic process - selection
A. Schwarzinger
Boris Morgounovski
Page 19
Theory Intel Case Study
main
message
Role of top management Main problems and challenges
»
» With increasing size of an » Ongoing internal view of Intel as a
research “memory company” in combination
questions organization, strategy making with a resource allocation problem:
& purpose becomes more complicated and
can not be communicated to all »
»
DRAM made Intel successful, so the
management levels in detail wrong vision of Intel as a “memory
company” went on and up to 1/3 of
Intel
field study » Participants on different R&D expenses flew to DRAM
organizational levels perceive the » Rest of the resources were allocated to
»
strategies which have the highest more profitable businesses than DRAM
ecology of potential for themselves
strategy » But: new decisions and opportunities
making
» “Internal variation” grew without any change on the
organizational level
»
» Top management has to establish » Discrepancy between the internal
summary & a structural context that selection mechanism and
propositions encompasses cultural and organizational strategy
administrative mechanisms
»
» Possible solution: internal selection
mechanism must reflect the selective
discussion pressures of the environment

20. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us«
framework developed within the paper
A. Schwarzinger
Boris Morgounovski
Page 20
Intraorganizational Ecology of Strategy Making
and Organizational Adaption
main
message
»
Variation Selection Retention Organizational
research
questions
Adaption
& purpose
»
Intel
field study
Induced
»
strategic
processes
ecology of
strategy
making
»
Autonomous
summary &
propositions strategic
processes
»
discussion

21. »in detail«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
induced strategic process - variation
A. Schwarzinger
Boris Morgounovski
Page 21
Theory Intel Case Study
main
message
» Induced process has an » Intel’s strategy in 1989:
»
variation-reduction effect in the “we can do variations on
research set of strategic initiatives present business very well,
questions
& purpose
but doing something new is
difficult”
»
» Induced process depends on a
Intel lot of evolution left in the
field study
current technology/ growth
opportunities
»
ecology of
strategy
making
»
summary &
propositions
»
discussion

22. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us«
framework developed within the paper
A. Schwarzinger
Boris Morgounovski
Page 22
Intraorganizational Ecology of Strategy Making
and Organizational Adaption
main
message
»
Variation Selection Retention Organizational
research
questions
Adaption
& purpose
»
Intel
field study
Induced
»
strategic
processes
ecology of
strategy
making
»
Autonomous
summary &
propositions strategic
processes
»
discussion

23. »in detail«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
induced strategic process - adaption
A. Schwarzinger
Boris Morgounovski
Page 23
Relative inertia Adjustment Reorientation
main
message
» The rate of the » Adjustments are to » Firms confronted
»
strategic change a large extent with pressures
research that the company deliberate, from
questions
& purpose
can implement reflecting strategic environmental
will, in the long choice variations first try
»
run, be lower than to increase efforts
the rate of the » Intel: Several to avoid the
Intel change in the adjustments to reorientation as
field study
environment stay viable in the major strategic
DRAM business
»
changes are
» Intel: Articulation (reduce costs, needed
ecology of
strategy of the time, new
making microprocessor differentiating
»
strategy after only strategies, …)
5 years
summary & » Adjustments only
propositions » But: Why was in the short run if
relative inertia so the evolution is
»
low at Intel? changing
discussion

24. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us«
framework developed within the paper
A. Schwarzinger
Boris Morgounovski
Page 24
Intraorganizational Ecology of Strategy Making
and Organizational Adaption
main
message
»
Variation Selection Retention Organizational
research
questions
& purpose
»
Intel
field study
»
ecology of
strategy
making Induced
»
strategic
processes
summary &
propositions
Autonomous
»
strategic
processes
discussion

25. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us?«
research framework
A. Schwarzinger
Boris Morgounovski
Page 25
Induced Strategic Process
within the scope of the organization’s current strategy
main
message
»
research
questions
& purpose Variation Selection Retention
»
» Random variation » Works through » Takes the form of
administrative and organizational
Intel
field study
» Strategic initiatives cultural level learning and
seeking for new mechanisms distinctive
»
opportunities, may competence (i. e.
ecology of
come from in- or » Regulation of shared views of
strategy outside the scope resources to organizational
making
of the strategy different areas of character,
»
strategic initiatives organizational goal
definition)
summary &
propositions
»
discussion
Autonomous Strategic Process
outside the scope of the organization’s current strategy

26. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us«
framework developed within the paper
A. Schwarzinger
Boris Morgounovski
Page 26
Intraorganizational Ecology of Strategy Making
and Organizational Adaption
main
message
»
Variation Selection Retention Organizational
research
questions
Adaption
& purpose
»
Intel
field study
Induced
»
strategic
processes
ecology of
strategy
making
»
Autonomous
summary &
propositions strategic
processes
»
discussion

27. »in detail«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
autonomous strategic process - variation
A. Schwarzinger
Boris Morgounovski
Page 27
Theory Intel Case Study
main
message
» Strategic initiatives outside the Intel’s real-world example:
»
scope of the current strategy
research seek attention and resources » The i860 Story
questions
& purpose
» Driven by operational-level » Intel’s entrance into the RISC
processor business (Reduced
»
managers seeking to use their
skills in new combinations with Instruction Set Computing)
Intel organization’s distinctive » Intel’s original strategy was not
field study
competences and seeking to enter the RISC business
career advancement through
»
alternative opportunity » RISC were called YARP (Yet
ecology of
strategy structure Another RISC Processor) within
making
Intel
» Enhanced by availability of
»
“unabsorbed slack” » Success for RISC processors due
summary & to clever “promotion” within
propositions Intel: “We designed it as a stand-
alone processor, but made it very
»
useful as an accessory to the
i486”
discussion

28. »in detail«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
autonomous strategic process - variation
A. Schwarzinger
Boris Morgounovski
Page 28
main
message
“You have to be naive, but mature enough to realize that
»
research the process takes a long time. You have to be sensitive
questions
& purpose to political toes. You have to be a religious zealot, but
»
not too religious because then you lose your credibility.
Intel
field study
Finally, you have to succeed . . . . It is most difficult to
champion a product that threatens the company's
»
ecology of
[current] business.”
strategy
making
»
summary &
propositions
»
discussion

29. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us«
framework developed within the paper
A. Schwarzinger
Boris Morgounovski
Page 29
Intraorganizational Ecology of Strategy Making
and Organizational Adaption
main
message
»
Variation Selection Retention Organizational
research
questions
Adaption
& purpose
»
Intel
field study
Induced
»
strategic
processes
ecology of
strategy
making
»
Autonomous
summary &
propositions strategic
processes
»
discussion

30. »in detail«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
induced strategic process - selection
A. Schwarzinger
Boris Morgounovski
Page 30
Theory Intel Case Study
main
message
» Defining strategic context for Intel’s real-world example:
»
new initiatives
research
» The Add-On Board Story: New
questions » Finding resources outside idea was initially rejected by the
& purpose
regular resource allocation strategic planning process, but
»
processes then was supported by Intel’s
internal corporate venturing
Intel » Demonstrating viability in program and became
field study
external environment through successful
entrepreneural activity
»
ecology of
strategy
» Mobilizing internal support of
making upper level managers
»
» Developing new competences
summary & and skills
propositions
» Setting stage for an
»
amendment in the
organizational strategy
discussion

31. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us«
framework developed within the paper
A. Schwarzinger
Boris Morgounovski
Page 31
Intraorganizational Ecology of Strategy Making
and Organizational Adaption
main
message
»
Variation Selection Retention Organizational
research
questions
Adaption
& purpose
»
Intel
field study
Induced
»
strategic
processes
ecology of
strategy
making
»
Autonomous
summary &
propositions strategic
processes
»
discussion

32. »in detail«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
autonomous strategic process - retention
A. Schwarzinger
Boris Morgounovski
Page 32
Theory Intel Case Study
main
message
» Changes in organizational “Intel's bread and butter is in the
»
learning, distinctive x86 product family. (…) But if
research competence and relative
questions importance of new activities there are enough people out
& purpose
there who want to buy YARP's,
»
» Leads top management to then we call the i860 a YARP
recognize that a major change
Intel in strategy is necessary and killer. It is the highest
field study
feasible performance RISC processor on
»
the market.”
» Leads to new ex post vision
ecology of
strategy
making » Once formally ratified, new » Autonomous initiatives provide
vision becomes part of the an organization with an internal
»
basis for the induced process window on future, potentially
summary & major environmental variations
propositions in markets and technologies,
and with strategic options
»
discussion

33. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us«
framework developed within the paper
A. Schwarzinger
Boris Morgounovski
Page 33
Intraorganizational Ecology of Strategy Making
and Organizational Adaption
main
message
»
Variation Selection Retention Organizational
research
questions
Adaption
& purpose
»
Intel
field study
Induced
»
strategic
processes
ecology of
strategy
making
»
Autonomous
summary &
propositions strategic
processes
»
discussion

34. »in detail«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
autonomous strategic process - adaption
A. Schwarzinger
Boris Morgounovski
Page 34
Strategic Renewal
main
message
» Major change in organizational strategy
»
research
» Preeceded by internal experimentation and
questions selection
& purpose
»
»
Offers organization possibilities for anticipatory
adaption to new environmental demands and/or
Intel to enter new niches
field study
»
ecology of
strategy
making
»
summary &
propositions
»
discussion

35. presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
»what do they want to tell us?«
research framework
A. Schwarzinger
Boris Morgounovski
Page 35
Induced Strategic Process
within the scope of the organization’s current strategy
main
message
»
research
questions
& purpose Variation Selection Retention
»
» Random variation » Works through » Takes the form of
administrative and organizational
Intel
field study
» Strategic initiatives cultural level learning and
seeking for new mechanisms distinctive
»
opportunities, may competence (i. e.
ecology of
come from in- or » Regulation of shared views of
strategy outside the scope resources to organizational
making
of the strategy different areas of character,
»
strategic initiatives organizational goal
definition)
summary &
propositions
»
discussion
Autonomous Strategic Process
outside the scope of the organization’s current strategy

36. »main message«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
induced and utonomous strategic processes
A. Schwarzinger
Boris Morgounovski
Page 36
Induced strategic processes Autonomous strategic processes
main
message
»
research
questions
& purpose
»
Intel
field study
»
ecology of
strategy
making
»
summary &
propositions
»
discussion

37. »what else?«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
link to Mintzberg/Waters
A. Schwarzinger
Boris Morgounovski
Page 37
Induced strategic processes Autonomous strategic processes
main
message
»
research
questions
& purpose
»
Intel
field study Purely deliberate strategies Purely emergent strategies
»
ecology of
strategy
making
»
summary &
propositions
»
discussion
Umbrella strategy Imposed strategy

38. »What it‘s all about?«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
Agenda.
A. Schwarzinger
Boris Morgounovski
Page 38
» main message of the paper
» research question(s) & purpose
» the Intel field study
» ecology of strategy making
» summary & propositions
» discussion

39. »lessons learnt reloaded«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
propositions
A. Schwarzinger
Boris Morgounovski
Page 39
main
message
» Firms that are relatively successful over long periods of
time (>10 years) will be characterized by top management
»
that are concerned with building the quality of the
research
questions organization’s induced and autonomous strategic
processes as well as with the content of the strategy itself
& purpose
»
Intel » Firms that are relatively successful over a long period of
field study
time (>10 years) will be characterized by maintaining top
»
driven strategic intent while simultaneously maintaining
ecology of
strategy
bottoms-up driven internal experimentation and selection
making processes
»
» The population of firms with successful strategic
reorientations will contain a significantly higher proportion
summary &
propositions
of firms whose strategic reorientations were preceded by
»
internal experimentation and selection processes than the
discussion
population of firms with failing strategic reorientations

40. »What it‘s all about?«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
Agenda.
A. Schwarzinger
Boris Morgounovski
Page 40
» main message of the paper
» research question(s) & purpose
» the Intel field study
» ecology of strategy making
» summary & propositions
» discussion

41. »let‘s talk about it«
presentation of scientific papers
seminar: strategy-as-pratice
University of Zurich
23rd of September, 2010
discussion
A. Schwarzinger
Boris Morgounovski
Page 41
» Any questions?
main
message
»
research
questions
& purpose
»
Intel
field study
»
ecology of
strategy
making
»
summary &
propositions
»
discussion