What goes on beneath the surface of reconfiguration? the impact of redeployment via activity addition and subtraction on firm scope and turnover

Published

Journal Article

© 2016 by Emerald Group Publishing Limited All rights of reproduction in any form reserved. Strategy research has long understood that reconfiguration of the scope of the activities a firm engages in over time is critical to its long-run success, while under-emphasizing differences in redeployment strategy that underlie apparently similar scope and changes in scope. In this paper, we build on the idea that a firm's number of activities (scope) and change in activities (turnover) arise from two fundamental rates of redeployment: the rate at which activities are added and the rate at which activities are subtracted. In net, the turnover rate reflects how actively a firm reconfigures its resource base by redeploying resources via addition and subtraction of activities. We develop a model that links addition and subtraction with the composition of a firm's activities and then provide an empirical illustration using data from the U.S. Patents and Trademarks Office. As an example of one extension, the model can be generalized to incorporate elements of absorptive capacity. The analysis contributes to our understanding of how firms reconfigure their activities and provide managers with a clearer understanding of tools that guide redeployment of existing resources.

Full Text

Duke Authors

Cited Authors

  • Blit, J; Liu, CC; Mitchell, W

Published Date

  • January 1, 2016

Published In

Volume / Issue

  • 35 /

Start / End Page

  • 185 - 216

International Standard Serial Number (ISSN)

  • 0742-3322

Digital Object Identifier (DOI)

  • 10.1108/S0742-332220160000035008

Citation Source

  • Scopus