Comprising a series of contributions from experts in the field, the book addresses key questions about the opportunities and threats posed by these times of turmoil, including: How do existing industries sustain their competitiveness in such difficult times? How do networks stave off threats from new technologies? How do emerging and incumbent companies survive when growth is not an option? And how should companies be governed during periods of industry structuring and restructuring?

In answering these questions, the contributors provide an overview of the strategies that industries, networks, businesses and managers are currently deploying in order to adapt to chaotic conditions and to enhance business profitability. Their responses make a distinctive contribution to scholarly thought and management practice.

Karel Cool holds the BP Chair of European Competitiveness and is Professor of Strategic Management at INSEAD in Fontainebleau, France. He has consulted for many international companies on major problems of corporate and industry restructuring and is the Associate Editor of theStrategic Management Journal.

James Henderson holds the Tejabaipul Term Chair and is Assistant Professor of Strategic Management at Babson College in Wellesley, MA. He works on many strategy-related topics for international companies.

List of Contributors vii

About the Editors x

1 Restructuring Strategy 1James Henderson, Karel Cool, and René Abate

Part I Industry and Network Competitiveness 15

2 Maintaining Collective Assets, the Tragedy of the Commons, and Supply Chain Performance: The Case of the Champagne Industry 17Karel Cool and James Henderson

3 Organizing around Strategic Relationships: Networks of Suppliers as Knowledge Generators in the Italian Motorcycle Industry 44Andrea Lipparini and Gianni Lorenzoni

4 Assessing the Knowledge Landscape across Firms in Alliance Networks and its Impact on Organizational Innovation Performance 68Beiqing (Emery) Yao and Susan McEvily

5 Generative Interactions: The New Source of Competitive Advantage 86Yves Morieux, Mark Blaxill, and Vladislav Boutenko

Part II Successful Business Strategies during Periods of Industry Structuring and Restructuring 111

6 Sustaining Superior Performance through a Bubble: Inter-firm Differences in the e-Consulting Industry 113M. Julia Prats and Ashish Nanda

7 Delaying Market Entry: How Long Is Too Long? 139Moren Lévesque and Dean A. Shepherd

8 Robust Capabilities? An Empirical Study of Incumbent-Entrant Product Development Capabilities after Radical Technological Change 153Neil Jones

9 The Form of Departure: The Consequences of Presumptive Adaptation of Franchising Knowledge for Local Network Growth 175Gabriel Szulanski and Robert Jensen

Part III Superior Management and Governance Practices 205

10 A Bayesian Application of the Resource-based View: Narrowing the Gap between Theory and Practice 207Mark H. Hansen, Lee T. Perry, and C. Shane Reese

11 How Much Do Middle Managers Matter, Really? An Empirical Study on their Impact on Sustained Superior Performance 236Johanna Mair

12 Impacts of Justification Behavior: The Forgotten Costs of Corporate Governance? 251Michael Nippa and Kerstin Petzold

13 A New Approach to Improving Board Vigilance: Shift the Focus to Board Process 268Ann C. Mooney and Sydney Finkelstein

Index 289