P&G’s Skin Care, Oral Care, Feminine Care, and Home Care businesses. These four businesses have delivered 11% average sales growth over the past six years, adding nearly $1 billion per year in sales since the beginning of the decade. In the old structure [prior to 1998], and with past strategies, these businesses were not a priority. They did not get full attention from business leaders who had to keep core businesses growing while also supporting all the go-to-market and business services activities that were vertically integrated within the business units.
In the much more agile, flexible, and responsive current structure, these limitations have been stripped away and businesses such as Skin Care and Home Care have become strong global businesses in their own right, with the resources and focus necessary to grow. Their growth potential has been unleashed, and these businesses have emerged as disproportionate growth drivers – even as core businesses such as Fabric Care, Baby Care, and Hair Care have continued to grow ahead of their categories simultaneously.
Organizational structure can be a liability, particularly for large, diversified multi- national companies. By linking structure so tightly with strategies and strengths, we have made organization design and supporting business systems critical enablers of sustainable growth.
This inter-organizational relationship is indeed a value-added capability (P&G 2006 Annual Report, p. 6).
ABB and P&G are just two among many firms that could attribute their success to an ‘‘interpreneurial’’ approach. IBM’s Insurance Research Center, which was created to bring researchers together with lead customers to develop applications for the insurance industry, provides another example. One result of this effort was to develop IBM’s insurance application architecture (IAA) that has been used with 40 different insurance and financial services companies. Again, this is an example of a firm that was enabled to capture new business by coupling its entrepreneur- ial abilities with key customer relationships to create a new capability. This new combination can be leveraged to achieve competitive advantage and venture growth. Interpreneurship, therefore, as a process that draws on both internal entrepreneurial skills and external strategic alliances, provides numerous promising avenues for future research.
3. Our ‘‘market proactiveness’’ corresponds to Lumpkin and Dess’ (2001)
‘‘proactiveness’’.
4. Referred to as the Construction of Cost Competitiveness for the 21st Century or ‘‘CCC21’’.
5. FromDoz and Hamel’s (1998)discussion in Chapter 2 ofAlliance Advantage.
6. See Macy, Farias, Rosa, and Moore, 2007 for a complete discussion of enterprise teams.
7. In PLS analysis, measurement paths for both reflective and formative scales are estimated. In contrast, in covariance structure analysis (using programs such as LISREL or AMOS), only the measurement paths for reflective scales are estimated.
REFERENCES
Adler, P., & Kwon, S.-W. (1999). Social capital: The good, the bad and the ugly. In: E.L. Lesser (Ed.),Knowledge and social capital: Foundations and applications(pp. 89–118). Boston, MA: Butterworth Heinemann.
Amit, R., & Schoemaker, P. J. H. (1993). Strategic assets and organizational rent.Strategic Management Journal,4(1), 33–47.
Anderson, J. C., & Narus, J. A. (1990). A model of distributor firm and manufacturer firm working partnerships.Journal of Marketing,54, 42–58.
Arnett, D. B., German, S. D., & Hunt, S. D. (2003). The identity salience model of relationship marketing success: The case of nonprofit marketing.Journal of Marketing,67(2), 89.
Arnett, D. B., Laverie, D., & Meiers, A. (2003). Developing parsimonious retailer equity indexes using partial least squares analysis: A method and application. Journal of Retailing,79(3), 161–170.
Arnett, D., Macy, B., & Wilcox, J. (2005). The role of core-selling teams in supplier-buyer relationships.Journal of Personal Selling and Sales Management,25(1), 27–42.
Barclay, D. W. (1991). Interdepartmental conflict in organizational buying. Journal of Marketing Research,28(2), 145–160.
Barney, J. (1986). Strategic factor markets: Expectation, luck and business strategy.Manage- ment Science,32(10), 1231–1241.
Barney, J. (1991). Firm resources and sustained competitive advantage.Journal of Management, 17(1), 99–120.
Bettis, R. A., & Hitt, M. A. (1995). The new competitive landscape.Strategic Management Journal,16(5), 7–19.
Black, J., & Boal, K. (1994). Strategic resources: Traits, configurations, and paths to sustainable competitive advantage.Strategic Management Journal,15, 131–149.
Boal, K. B., & Bryson, J. M. (1987). Representation, testing and policy implications of planning processes.Strategic Management Journal,8(3), 211–231.
Bourdieu, P. (1986). The forms of capital. In: J. G. Richardson (Ed.),Handbook of theory and research for the sociology of education. New York: Greenwood.
Bruyneel, S., Dewitte, S., Vohs, K., & Warlop, L. (2006). Repeated choosing increases susceptibility to affective product features. International Journal of Research in Marketing,23(2), 215–225.
Bucklin, L. P., & Sengupta, S. (1993). Organizing successful co-marketing alliances.Journal of Marketing,57(2), 38–60.
Chandler, A. D., Jr. (1962). Strategy and structure: Chapters in the history of American Industrial Enterprise. Cambridge, MA: MIT Press.
Child, J. (1972). Organizational structure, environment and performance: The role of strategic choice.Sociology,6(1), 1–22.
Chin, W. W. (1998). The partial least square approach to structural equation modeling. In:
G. A. Marcoulides (Ed.),Modern methods for business research(pp. 295–336). Mahwah, NJ: Erlbaum.
Chin, W. W., Marcolin, B. L., & Newsted, P. R. (1996).Proceedings of the 17th international conference on information systems, Cleveland, OH.
Chung, S., Singh, H., & Lee, K. (2000). Complementarity, status similarity, and social capital as drivers of alliance formation.Strategic Management Journal,21(1), 1–22.
Coleman, J. S. (1984). Introducing social structure into economic analysis. The American Economic Review,74(2), 84–89.
Coleman, J. S. (1988). Social capital in the creation of human capital.American Journal of Sociology,94(Supplement), S95–S121.
Conner, K. R. (1991). A historical comparison of resource-based theory and five schools of thought.Journal of Management,17(1), 121–154.
Conner, K. R., & Prahalad, C. K. (1996). A resource-based theory of the firm: Knowledge vs.
opportunism.Organization Science,7(5), 477–501.
Cooper, A. C., & Dunkelberg, W. C. (1986). Entrepreneurship and paths to business ownership.
Strategic Management Journal,7(1), 53–68.
Covin, J. G., & Slevin, D. P. (1988). The influence of organization structure on the utility of an entrepreneurial top management style.Journal of Management Studies,25, 217–234.
Covin, J. G., & Sleven, D. P. (1991). A conceptual model of entrepreneurship as firm behavior.
Entrepreneurship: Theory and Practice,16(1), 7–24.
Das, T. K., & Teng, B.-S. (1998). Between trust and control: Developing confidence in partner cooperation in alliances.Academy of Management Review,23(3), 491–512.
Das, T. K., & Teng, B.-S. (2001). Trust, control, and risk in strategic alliances: An integrated framework.Organization Studies,22(2), 251–283.
Dess, G. G., Lumpkin, G. T., & McGee, J. E. (1999). Linking corporate entrepreneurship to strategy, structure, and process: Suggested research directions.Entrepreneurship: Theory and Practice,23(3), 85–102.
Deutsch, M. (1958). Trust and suspicion.Journal of Conflict Resolution,2(4), 265–279.
Dierickx, I., & Cool, K. (1989). Asset stock accumulation and sustainability of competitive advantage.Management Science,35(12), 207–223.
Donaldson, L. (1987). Strategy and structural adjustment to regain fit and performance:
In defence of contingency theory.Journal of Management Studies,24(1), 1–24.
Doty, D. H., & Glick, W. H. (1994). Typologies as a unique form of theory building: Toward improved understanding and modeling. Academy of Management Review, 19(2), 230–251.
Doz, Y., & Hamel, G. (1998).Alliance advantage: The art of creating value through partnership.
Cambridge, MA: Harvard Business School Press.
Drucker, P. (1985).Innovation and entrepreneurship. New York: Harper & Row.
Dwyer, F. R., Schurr, P. H., & Oh, S. (1987). Developing buyer-seller relationships.Journal of Marketing,51(2), 11–27.
Dyer, J., & Singh, H. (1998). The relation based view of the firm.Academy of Management Review,23(4), 660–679.
CURT B. MOORE ET AL.
98
Eisenhardt, K. (2002). Has strategy changed?MIT Sloan Management Review,43(2), 88–91.
Fountain, J. (1998). Social capital: A key enabler of innovation. In: L. Branscomb & J. Keller (Eds),Investing in innovation(pp. 85–111). Cambridge, MA: MIT Press.
Fox-Wofgramm, S., Boal, K., & Hunt, J. (1998). Organizational adaptation to institutional change: A comparative study of first-order change in prospector and defender banks.
Administrative Science Quarterly,42, 87–126.
Fukuyama, F. (1995). Trust: The social virtues and the creation of prosperity. New York:
Penguin Books.
Galbraith, J. R. (2002).Designing organizations: An executive guide to strategy, structure, and process. San Francisco, CA: Jossey-Bass.
Galbraith, J. R. (2005). Designing the customer-centric organization: A guide to strategy, structure, and process. San Francisco, CA: Jossey-Bass.
Geisser, S. (1975). The predictive sample reuse method with applications. Journal of the American Statistical Association,70(350), 320–328.
Gerybadze, A., & Reger, G. (1999). Globalization of R&D: Recent changes in the management of innovation in transnational corporations.Research Policy,28(2–3), 251–274.
Granovetter, M. (2005). The impact of social structure on economic outcomes. Journal of Economic Perspectives,19(1), 33–50.
Gresov, C., & Drazin, R. (1997). Equifinality: Functional Equivalence in Organization Design.
Academy of Management Review,22(2), 403–428.
Harrison, J. S., Hitt, M. A., Hoskisson, R. E., & Ireland, R. D. (2001). Resource complementarity in business combinations: Extending the logic to organizational alliances.Journal of Management,27(6), 679–690.
Helfat, C. (2003). The SMS Blackwell handbook of organizational capabilities: Emergence, development, and change. Malden, MA: Blackwell.
Helfat, C. E., & Raubitschek, R. S. (2000). Product sequencing: Co-evolution of knowledge, capabilities and products.Strategic Management Journal,21(10/11), 961–980.
Hitt, M., & Ireland, D. (2000). The intersection of entrepreneurship and strategic management research. In: D. L. Sexton & H. Landstrom (Eds), The Blackwell handbook of entrepreneurship(pp. 45–63). Oxford, UK: Blackwell.
Hitt, M. A., Ireland, R. D., Camp, M. S., & Sexton, D. L. (2001). Guest editors introduction to the special issue. Strategic entrepreneurship: Entrepreneurial strategies for wealth creation.Strategic Management Journal,22(6/7), 479–491.
Hunt, S. D. (1997). Competing through relationships: Grounding relationship marketing in resource-advantage theory.Journal of Marketing Management,13(5), 431–445.
Hunt, S. D. (2000). A general theory of competition: Resources, competences, production, economic growth. Thousand Oaks, CA: Sage.
Hunt, S. D., & Arnett, D. B. (2003). Resource-advantage theory and embeddedness: Explaining R-A theory’s explanatory success.Journal of Marketing Theory and Practice,11(1), 1–17.
Hunt, S. D., & Morgan, R. M. (1995). The comparative advantage theory of competition.
Journal of Marketing,59(2), 1–15.
Hyatt, D. E., & Ruddy, T. M. (1997). An examination of the relationship between work group characteristics and performance: Once more into the breech. Personnel Psychology, 50(3), 553–585.
Ireland, R. D., Hitt, M. A., Camp, M. S., & Sexton, D. L. (2001). Integrating entrepreneurship and strategic management actions to create firm wealth.The Academy of Management Executive,15(1), 49–63.
James, W. L., & Hatten, K. J. (1995). Further evidence on the validity of the self typing paragraph approach: Miles and snow strategic archetypes in banking. Strategic Management Journal,16, 161–168.
Jap, S. D. (1999). Pie-expansion efforts: Collaboration processes in buyer-supplier relationships.
Journal of Marketing Research,36(3), 461–475.
Kalwani, M. U., & Narayandas, N. (1995). Long-term manufacturer-supplier relationships:
Do they pay off for supplier firms?Journal of Marketing,59, 1–16.
Kirzner, I. M. (1997). Entrepreneurial discovery and the competitive market process:
An Austrian approach.Journal of Economic Literature,35(1), 60–85.
Kotabe, M., Martin, X., & Domoto, H. (2003). Gaining from vertical partnerships: Knowledge transfer, relationship duration and supplier performance improvement in the U.S. and Japanese automotive industries.Strategic Management Journal,24(4), 293–317.
Lambe, C. J., Spekman, R. E., & Hunt, S. D. (2002). Alliance competence, resources, and alliance success: Conceptualization, measurement, and initial test.Academy of Marketing Science, 30(2), 141–158.
Lesser, E. (2000). Leveraging social capital in organization. In: E. Lesser (Ed.),Knowledge and social capital(pp. 3–16). Boston, MA: Butterworth-Heinemann.
Lin, N. (2001).Social capital: A theory of social structure and action. New York: Cambridge University Press.
Lorenzoni, G., & Lipparini, A. (1999). The leveraging of interfirm relationships as a distinctive organizational capability: A longitudinal study.Strategic Management Journal,20(4), 317–338.
Lumpkin, G. T., & Dess, G. D. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance.Academy of Management Review,21(1), 135–172.
Lumpkin, G. T., & Dess, G. D. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle.Journal of Business Venturing,16, 429–451.
Luo, Y. (2004). Building a strong foothold in an emerging market: A link between resource commitment and environment conditions. Journal of Management Studies, 41(5), 749–773.
Macy, B. A. (forthcoming).Successful strategic change. San Francisco, CA: Berrett-Koehler.
Macy, B. A., Farias, G., Rosa, J. F., & Moore, C. B. (2007). Built to change: High performance work systems and self directed work teams–A quasi-experimental study design. In:
R. W. Woodman & Passmore (Eds),Research in organisational change and development (Vol. 16, pp. 347–429).
Miles, R. E., Snow, C. C., & Meyer, A. D. (1978). Organizational strategy, structure and process.Academy of Management Review,3, 546–562.
Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science,29, 770–791.
Mohr, J., & Spekman, R. (1994). Characteristics of partnership success: Partnership attributes, communication.Strategic Management Journal,15(2), 135–152.
Monczka, R. M., Petersen, K. J., Handfield, R. B., & Ragatz, G. L. (1998). Success factors in strategic supplier alliances: The buying company perspective.Decision Sciences,29(3), 553–577.
Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing.
Journal of Marketing,58(3), 20–38.
CURT B. MOORE ET AL.
100
Morris, M. H. (1998). Entrepreneurial intensity: Sustainable advantages for individuals, organizations, and societies. Westport, CT: Quorum Books.
Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage.Academy of Management Review,23(2), 242–267.
Nunnally, J. C. (1978).Psychometric Theory(2nd ed.). New York: McGraw-Hill.
Payne, G. T. (2006). Examining configurations and firm performance in a suboptimal equifinality context.Organization Science,17(6), 756–770.
Penrose, E. (1959).Theory of the growth of the firm. New York: Wiley.
Pinchot , G., III. (1985).Intrapreneuring: Why you don’t have to leave the corporation to become an entrepreneur. New York: Harper & Row.
Podolny, J. (1994). Market uncertainty and the social character of economic exchange.
Administrative Science Quarterly,39, 458–483.
Powell, W. W., Koput, K. W., & Smith-Doerr, L. (1996). Interorganizational collaboration and the locus of innovation: Networks of learning in biotechnology.Administrative Science Quarterly,41, 116–145.
Putnam, R. D. (1993). The prosperous community: Social capital and public life.American Prospect,13, 35–42.
Ring, P. S., & Van De Ven, A. H. (1992). Structuring cooperative relationships between organizations.Strategic Management Journal,13(7), 483–498.
Ruekert, R. W., & Walker, O. C., Jr. (1987). Interactions between marketing and R&D departments in implementing different business strategies. Strategic Management Journal,8(3), 233–249.
Sandefur, R., & Laumann, E. (1988). A paradigm for social capital.Rationality and Society, 10(4), 481–501.
Sarker, M. B., Echambadi, R., & Harrison, J. S. (2001). Alliance entrepreneurship and firm market performance.Strategic Management Journal,22, 701–711.
Saxton, T. (1997). The effects of partner and relationship characteristics on alliance outcomes.
Academy of Management Journal,40(2), 443–461.
Schollhammer, H. (1982). Internal corporate entrepreneurship. In: C. A. Ken, D. L. Sexton &
K. H. Vesper (Eds),Encyclopedia of entrepreneurship(pp. 209–223). Englewood Cliffs, NJ: Prentice Hall.
Schumpeter, J. A. (1934).The theory of economic development(original publication in 1933).
Cambridge, MA: Harvard Press-Transaction Inc.
Sivadas, E., & Dwyer, F. R. (2000). An examination of organizational factors influencing new product success.Journal of Marketing,64(1), 31–49.
Smith, J. B., & Barclay, D. W. (1997). The effects of organizational differences and trust on effectiveness of selling partner relationships.Journal of Marketing,61, 3–21.
Spekman, R. E. (1998). Strategic supplier selection: Understanding long-term buyer.Business Horizons,31(4), 75–82.
Spender, J. C. (1996). Making knowledge the basis of a dynamic theory of the firm.Strategic Management Journal,17(Winter), 45–62.
Stone, M. (1974). Cross-validatory choice and assessment of statistical predictions.Journal of the Royal Statistical Society. Series B (Methodological),36(2), 111–147.
Stuart, T. E. (2000). Interorganizational alliances and the performance of firms: A study of growth and innovation rates in a high-technology industry. Strategic Management Journal,21(8), 791.
Tan, J. (1997). Regulatory environment and strategic orientations in a transitional economy:
A study of Chinese private enterprise.Entrepreneurship: Theory and Practice,21(1), 31–47.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management.
Strategic Management Journal,18(7), 509–533.
Tsai, W., & Ghoshal, S. (1998). Social capital and value creation: The role of intrafirm networks.Academy of Management Journal,41(4), 464–473.
Uzzi, B. (1996). The sources and consequences of embeddedness for economic performance of organizations: The network effect.American Sociological Review,61(4), 674–698.
Uzzi, B. (1997). Social structure and competition in interfirm networks: The paradox of embeddedness.American Sociological Review,42(1), 37–69.
Van de Ven, A., & Ferry, D. (1980). A revised framework for organization assessment. In:
E. Lawler, D. Nadler & C. Cammann (Eds),Organizational assessment(pp. 216–260).
New York: Wiley.
Walker, G., Kogut, B., & Shan, W. (1997). Social capital, structural holes and the formation of an industry network.Organization Science,8(2), 109–126.
Webster, F. A. (1977). Entrepreneurs and ventures: An attempt at classification and clarification.Academy of Management Review,2, 54–61.
Wenerfelt, B. (1984). A resource-based view of the firm.Strategic Management Journal,5(2), 171–181.
Williamson, O. E. (1970).Corporate control and business behavior: An inquiry into the effects of organization form on enterprise behavior. Englewood Cliffs, NJ: Prentice-Hall.
Wold, H. (1980). Model construction and evaluation when theoretical knowledge is scarce:
Theory and application of partial least squares. In: J. Kmenta & J. G. Ramsey (Eds), Evaluation of econometric models(pp. 295–336). New York: Academic Press.
Wold, H. (1982). Soft modeling: The basic design and some extensions. In: K. G. Joreskog &
H. Wold (Eds),Systems under indirect observation. Part II. Amsterdam: North Holland Press.
Wold, H. (1985). Partial least squares. In: S. Kotz & N. L. Johsnon (Eds),Encyclopedia of statistical sciences(Vol. 6, pp. 581–591). New York: Wiley.
Wold, H. (1989). Introduction to the second generation of multivariate analysis. In: H. Wold (Ed.),Theoretical empiricism(pp. vii–xi). New York: Paragon House.
Zahra, S. A., Jennings, D. F., & Kuratko, D. F. (1999). The antecedents and consequences of firm-level entrepreneurship: The state of the field.Entrepreneurship: Theory and Practice, 24(2), 45–65.
CURT B. MOORE ET AL.
102