Proposing a Model of a Strategic Renewal Ecosystem with an Emphasis on Corporate Sustainability

Document Type : Research Paper

Authors

1 Assistant Prof., Department of Business Management, Faculty of Management and Economic, Tarbiat Modares University, Tehran, Iran.

2 Ph.D. Candidate, Department of Strategic Management, Faculty of Management and Economic, Tarbiat Modares University, Tehran, Iran.

Abstract

Objective
Strategic renewal in an ecosystem seeks to promote sustainable economic growth policies and increase corporate responsibility. It focuses on the environmental activities and challenges of the company in industries and policies. It is also used to improve the organization's strategies over time. Strategic renewal for corporate sustainability is a complex, ongoing, and challenging process in business. The evolutionary nature of ecosystems allows all players and stakeholders to evolve dynamically and continuously and to influence each other. Considering the significance of sustainability and its impact on economic prosperity, social welfare, and environmental protection, alongside the critical role of strategic renewal in driving corporate sustainability initiatives, this study is to provide a model of a strategic renewal ecosystem with a particular emphasis on corporate sustainability.
 
Methodology
The current study adopts a developmental approach in terms of its purpose, aiming to propose advancements and improvements. It also utilizes a descriptive approach for data collection, seeking to gather comprehensive information. It uses the Meta-synthesis method, which involves synthesizing and analyzing existing research findings to derive meaningful insights. The sampling population includes all the articles and studies that were conducted in the field of strategic renewal and corporate sustainability and were searched in reliable scientific databases in the period of 2000-2021. After the evaluation of 397 articles searched with CASP tools,46 articles were selected as the research sample. Then their content was analyzed and the concepts and categories were obtained. The importance and the concepts were determined by Shannon's entropy method.
 
Findings
According to the findings of the study, 55 concepts were identified in categories including internal factors of organization, external factors of organization, and environmental factors. The categories of participatory management and leadership, internal and external stakeholders, environmental conditions and regulations, environmental uncertainty, networking, strategic communication, purposeful organizational culture, organization, and management of the organizational structure, and dynamic capabilities were the most important factors, respectively.
 
Conclusion
In the face of uncertainty, many organizations encounter the challenge of sustaining their position. Strategic renewal serves as a means to foster innovation and ensure the continued vitality of organizations. On the one hand, strategic modernization, due to its entrepreneurial nature, will affect sustainable economic growth policies and increase the responsibility of companies. On the other hand, identifying ecosystem players with a hybrid approach will enable managers to implement strategic renewal for sustainability more quickly. To ensure the success of strategic renovation to sustain the company, the organization must align and integrate the renovation ecosystem through continuous collaboration to maintain communication between the ecosystem players. In general, this research tried to provide managers and researchers with a holistic understanding of renewal from an ecosystem perspective. It also aimed to facilitate progress toward sustainability objectives for all stakeholders involved

Keywords

Main Subjects

References

 
Abbas, J. (2019). Impact of total quality management on corporate sustainability through the mediating effect of knowledge management. Journal of Cleaner Production, 11(8), 1-37.
Adner, R. (2017). Ecosystem as structure: An actionable construct for strategy. Journal of management, 43(1), 39-58.
Akpotu, C. (2016). Strategic alliance and operational sustainability in the nigerian banking sector. Review of Social Sciences, 1(8), 44-50.
Al Humaidan, S., & Sabatier, V. (2017). Strategic renewal in times of environmental scarcity: The mediating role of technology in business model evolution. Journal of Organizational Change Management, 30(1), 106-120.
Alipour, S., Colabi, A. M., & Khodadad Hosseini, S. H. (2021). Corporate Sustainability Model Based on Digital Transformation, Strategic Renewal, and Value Creation. Commercial Strategies, 18(17), 24-41.  (in Persian)
Al-Kwifi, O. S. (2012). Implementing strategic renewal by collective organizational learning. Journal for International Business and Entrepreneurship Development, 6(2), 125-141.‏
Altmann, P. (2016). When shared frames become contested: Environmental dynamism and capability (re) configuration as a trigger of organizational framing contests. In Uncertainty and strategic decision-making. Emerald Group Publishing Limited, 33-56.
Anderson, E. (2018). Intersections of partnership and leadership in entrepreneurial ecosystems: Comparing three US regions. Economic Development Quarterly, 32(2), 119-134.
Au, K., Han, S., & Chung, H. M. (2018). The impact of sociocultural context on strategic renewal: a twenty-six-nation analysis of family firms. Cross Cultural & Strategic Management, 25(4), 604-627.
Azar, A. (2001). Extension and development of Shannon's entropy method for data processing in content analysis. Al-Zahra University Humanities, 38 (3), 1-18. (in Persian)
Basu, S., & Wadhwa, A. (2013). External venturing and discontinuous strategic renewal: An options perspective. Journal of Product Innovation Management, 30(5), 956-975.‏
Binns, A., Harreld, J.B., O'Reilly, C. & M.L. Tushman (2015). The art of strategic renewal, MIT Sloan. Management Review, 55 (2), 21–23.
Bogers, M., Sims, J. and West, J. (2019). What is an ecosystem? Incorporating 25 years of ecosystem research, Academy of Management Annual Meeting Proceedings, 19(1), 110-128.
Burns, H., Diamond-Vaught, H., & Bauman, C. (2015). Leadership for sustainability: Theoretical foundations and pedagogical practices that foster change. International Journal of Leadership Studies. 9(1), 1-14.
Canales, J. I. (2013). Constructing interlocking rationales in top‐driven strategic renewal, British Journal of Management, 24(4), 498-514.‏
Colabi, A. M. (2021). Designing an Entrepreneurial Strategic Renewal Model in Media organizations. Journal of Interdisciplinary Studies in Communication and Media, 4(13), 123-145. (in Persian)
Colabi, A. M., Zali, M. R., Yadolahi, J. & Rezvani, M. (2016). Conceptualization And Contextualization of Entrepreneurial Strategic Renewal -Case Study of Iran Ceramic and Tile Industry. Journal of Business Management Perspective, 15(27), 13-30. (in Persian)
Colabi, A., Karimirad, S. (2020). Entrepreneurial Strategic Renewal in the Post-Corona Era; the Firms of Tourism Industry. Tourism Management Studies, 15(0), 285-308. (in Persian)
Damert, M., & Baumgartner, R. J. (2018). External pressures or internal governance – What determines the extent of corporate responses to climate change. Corporate Social Responsibility and Environmental Management, 25(4), 473–488.
Do, T. T. P., & Luu, D. T. (2020). Origins and consequences of intrapreneurship with behaviour-based approach among employees in the hospitality industry. International Journal of Contemporary Hospitality Management, 32(12), 3949-3969.
Dung, L. T., & Giang, H. T. T. (2021). The effect of international intrapreneurship on firm export performance with driving force of organizational factors. Journal of Business & Industrial Marketing, 22(3). 28-41.
Dyllick, T., & Hockerts, K. (2002). Beyond the business case for corporate sustainability. Business strategy and the environment, 11(2), 130-141.‏
Finley, D. S., Gralen, A., & Fichtner, L. (2006). From bankruptcy to sustainability: Stakeholder engagement and strategic renewal in a performing arts organization. International Journal of Arts Management, 9(1), 4-16.‏
Flier, B., Van Den Bosch, F. A., Volberda, H. W., & Baden-Fuller, C. (2005). Strategic Renewal in the Dutch Financial Sector: Renewal Trajectories from a Competence-Based Perspective. In Competence Perspectives on Resources, Stakeholders and Renewal. Emerald Group Publishing Limited, 237-274.
Gandolfo, A., & Lupi, L. (2021). Circular economy, the transition of an incumbent focal firm: How to successfully reconcile environmental and economic sustainability? Business Strategy and the Environment, 30(7), 3297-3308.
Han, C., & Nielsen, B. B. (2019). Facilitating International Venturing of Emerging Market Firms Through Entrepreneurial Transformation: Contingent Role of Technological Environment. In International Business in a VUCA World: The Changing Role of States and Firms. Emerald Publishing Limited, 309-331.
Herbane, B. (2019). Rethinking organizational resilience and strategic renewal in SMEs. Entrepreneurship & Regional Development, 31(5-6), 476-495.‏
Hess, M. F., & Hess, A. M. (2016). Stakeholder–Driven Strategic Renewal. International Business Research, 9(3), 53-67.‏
Horst, S. O. & Moisander, J. (2015). Paradoxes of strategic renewal in traditional print-oriented media firms. International Journal on Media Management, 17(3), 157-174.‏
Hortovanyi, L., Szabo, R. Z., & Fuzes, P. (2021). Extension of the strategic renewal journey framework: The changing role of middle management. Technology in Society, 65(1), 1-11.‏
Huang, Y. F. (2009). Strategic renewal within an information technology firm: Exploration, exploitation and corporate venturing. International Journal of Entrepreneurial Behavior & Research, 15(5), 436-452.
Huy, Q. N. (2005). An emotion-based view of strategic renewal. In Strategy process. Emerald Group Publishing Limited, 3-37.
Jarvi, K., & Khoreva, V. (2020). The role of talent management in strategic renewal. Employee Relations: The International Journal, 24(9), 1744-1761.
Jones, O., & Macpherson, A. (2006). Inter-organizational learning and strategic renewal in SMEs: extending the 4I framework. Long Range Planning, 39(2), 155-175.‏
Kaipainen, J. (2020). Strategic Renewal Process Towards Sustainability–An Ecosystem Approach (Master's thesis). Tampere University.
Kaipainen, J., & Aarikka‐Stenroos, L. (2022). How to renew business strategy to achieve sustainability and circularity? A process model of strategic development in incumbent technology companies. Business Strategy and the Environment, 27(1), 3-26.
Kapoor, R. (2018). Ecosystems: broadening the locus of value creation. Journal of Organization Design, 7(1), 12-29.
Kearney, C., & Morris, M. H. (2015). Strategic renewal as a mediator of environmental effects on public sector performance. Small Business Economics, 45(2), 425-445.‏
Khan, S. H., Majid, A., & Yasir, M. (2020). Strategic renewal of SMEs: the impact of social capital, strategic agility and absorptive capacity. Management Decision, 58(8), 1877-1894.
Kreiser, P. M., & Davis, J. (2010). Entrepreneurial orientation and firm performance: The unique impact of innovativeness, proactiveness, and risk-taking. Journal of small business & entrepreneurship, 23(1), 39-51.Lin, J. (1991). Divergence measures based on the Shannon entropy. IEEE Transactions on Information theory, 37(1), 145-151.
Lin, J. (1991). Divergence measures based on the Shannon entropy. IEEE Transactions on Information theory, 37(1), 145-151.
Luu, T. D. (2021). Non-family employee strategic renewal in family firms: the transformational leadership role of family board members and psychological ownership. Journal of Family Business Management, 15(4), 1-23.
 Lysons, A. (2000). Strategic renewal and development implications of organizational effectiveness research in higher education in Australia. Tertiary Education & Management, 5(1), 49-64.‏
Maijanen, P., & Jantunen, A. (2014). Centripetal and centrifugal forces of strategic renewal: The case of the Finnish Broadcasting Company. International Journal on Media Management, 16(3-4), 139-159.‏
Manninen, K., & Huiskonen, J. (2022). Factors influencing the implementation of an integrated corporate sustainability and business strategy. Journal of Cleaner Production, 343(5), 43-61.
Marrewijk, M., & Werre, M. (2003). Multiple levels of corporate sustainability. Journal of Business ethics, 44(2), 107-119.
Martinuzzi, A. (2019). Introduction: The Sustainable Development Goals and the Future of Corporate Sustainability. In Business and the Sustainable Development Goals. Palgrave Pivot, Cham.‏
Mielcarek, P. (2018). The strategic renewal process–the challenge of creating and capturing value. Nauki o Zarzadzaniu, 23(4), 28-34.
Miller, K. D., Gomes, E., & Lehman, D. W. (2019). Strategy restoration. Long Range Planning, 52(5), 101-126.
Moller, K., & Halinen, A. (2017). Managing business and innovation networks—From strategic nets to business fields and ecosystems. Industrial Marketing Management, 67(1), 5-22.
Peeples, S. (2020). The Work Stories Do: How Stakeholder Storytelling Can Support Strategic Renewal, Doctoral dissertation, Harvard University.
Pellizzoni, E., Trabucchi, D., & Landoni, P. (2020). Co-design of Sustainability Models: Examples. In Universities as Drivers of Innovation. Springer, Cham.‏
Peters, G. F., & Romi, A. M. (2015). The association between sustainability governance characteristics and the assurance of corporate sustainability reports. Auditing: A Journal of Practice & Theory, 34(1), 163-198.
Phetphongphan, W. (2018). Strategic Renewal Capability and Firm Sustainability: An Empirical Investigation of Software Businesses in Thailand. Journal of Accountancy and Management, 10(3), 51-68.
Prashantham, S. (2008). New venture internationalization as strategic renewal. European management journal, 26(6), 378-387.‏
Ravasi, D., & Lojacono, G. (2005). Managing design and designers for strategic renewal. Long range planning, 38(1), 51-77.‏
Sandelowski, M., Barroso, J., & Voils, C. I. (2007). Using qualitative meta summary to synthesize qualitative and quantitative descriptive findings. Research in nursing & health, 30(1), 99-111.
Schrettle, S., Hinz, A., Scherrer-Rathje, M., & Friedli, T. (2014). Turning sustainability into action: Explaining firms’ sustainability efforts and their impact on firm performance. International Journal of Production Economics, 147(1), 73–84.
Shah, H. A., Yasir, M., Majid, A., & Javed, A. (2019). Impact of networking capability on organizational survival of SMEs: Mediating role of strategic renewal. Pakistan Journal of Commerce and Social Sciences (PJCSS), 13(3), 559-580.‏
Shu, C., De Clercq, D., Zhou, Y., & Liu, C. (2019). Pursuing sustainable development through green entrepreneurship: An institutional perspective. Business Strategy and the Environment, 30(8), 4281-4296.
Sichone, M., & Lew, C. (2021). Anglo American platinum South Africa: strategic renewal in a declining industry. Emerald Emerging Markets Case Studies, 11(3). 28-42.
Taussig, M. (2013). The neglected need for strategic renewal in emerging markets: Lessons from Vietnam in transition. Business Horizons, 56(4), 465-471.‏
Teece, D. J. (2019). Strategic renewal and dynamic capabilities: managing uncertainty, irreversibilities, and congruence. In Strategic Renewal (pp. 21-51). Routledge.
Urbano, D., Turro, A., Wright, M., & Zahra, S. (2022). Corporate entrepreneurship: a systematic literature review and future research agenda. Small Business Economics, 1-25.
van den Berg, J., Zijp, M. C., Vermeulen, W. J., & Witjes, S. (2019). Identifying change agent types and its implications for corporate sustainability integration based on worldviews and contextual factors. Journal of Cleaner Production, 229(1), 1125-1138.
van Lent, W., & Smith, A. D. (2019). Perceiving the Present by Means of the Past: Theorizing the Strategic Importance of Corporate Archives. In Strategic Responsiveness and Adaptive Organizations: New Research Frontiers in International Strategic Management. Emerald Publishing Limited,‏ 97-111.
Verbeke, A., Chrisman, J. J., & Yuan, W. (2007). A note on strategic renewal and corporate venturing in the subsidiaries of multinational enterprises. Entrepreneurship Theory and Practice, 31(4), 585-600.‏
Volberda, H. W., Baden-Fuller, C., & Van Den Bosch, F. A. (2001). Mastering strategic renewal: Mobilising renewal journeys in multi-unit firms. Long Range Planning, 34(2), 159-178.‏
Warner, K. S., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long range planning, 52(3), 326-349.‏
Wu, Q., He, Q., & Duan, Y. (2019). Corporate Strategic Change towards Sustainability: A Dynamic Capabilities View, Handbook of Strategic Renewal: Core concepts, Antecedents, and MicroFoundations. New York: Routledge.
Yilmaz, A. K., & Flouris, T. (2010). Managing corporate sustainability: Risk management process-based perspective. African journal of business management, 4(2), 162-179.
Zand, D. E. (2009). Strategic renewal: how an organization realigned structure with strategy. Strategy & Leadership, 37(3), 23-28.
Zimmer L. (2006). Qualitative meta-synthesis: A question of dialoguing with texts, Journal of Advanced Nursing, 53(3), 311-318.
Journal of Business Management
Volume 15, Issue 2
2023
Pages 248-272

Files

Share

How to cite

Statistics