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Strategic Management Journal

Strat. Mgmt. J., 38: 4–16 (2017)


Published online EarlyView in Wiley Online Library (wileyonlinelibrary.com) DOI: 10.1002/smj.2607
Received 24 October 2016

THE EXPANDING DOMAIN OF STRATEGIC


MANAGEMENT RESEARCH AND THE QUEST
FOR INTEGRATION
RODOLPHE DURAND,1 ROBERT M. GRANT,2* and TAMMY L. MADSEN3
1
HEC, Paris, France
2
Department of Management and Technology, Bocconi University, Milan, Italy
3
Management Department, The Leavey School of Business, Santa Clara University,
Santa Clara, California, U.S.A.

Research summary: This special issue of Strategic Management Journal was motivated by
concern that the growing scope and diversity of the strategic management field creates the
risk of incoherence and fragmentation and the belief that research reviews could contribute to
synthesis and integration. In this introductory essay, we address the expanding domain of strategic
management, consider where its boundaries lie, identify the forces engendering fragmentation,
and discuss how this special issue—and research reviews in general—can assist convergence
within the field of strategy. We conclude by addressing the potential for integration more broadly in
relation to the theories we deploy, the phenomena we investigate, and cohesiveness of our scholarly
community.
Managerial summary: The expanding domain of strategic management reflects the widening
range of strategic issues that practising managers face. However, the fragmentation that has
accompanied this broadening scope impedes the usefulness of strategic management research
in guiding strategic decision making. We argue that reviews of strategic management research,
such as those included within this special issue, can support the accumulation of an integrated,
empirically-validated knowledge base which is essential to informing management practice.
Copyright © 2016 John Wiley & Sons, Ltd.

INTRODUCTION On the one hand, scholars criticize the field’s


fragmentation, its preference for novelty over
Is everything “strategy”? Since its formal inception incremental advancement, its lack of rigorous
in the late 1970s, the strategic management field has theory building, its unwillingness to document and
experienced rapid growth as an area of research and report on empirical facts, its inability to subject
as a community of scholars. In particular, the field its many theories to systematic empirical testing,
has broadened in the range of phenomena studied, and the limited guidance it provides to managers.
the concepts and theories used to analyze these A common theme among the many critics is a
phenomena, and the empirical methods deployed. call for a period of consolidation, integration,
However, the expanding scale and scope of strategic and redirection. In contrast, other scholars view
management has been accompanied by increasing fragmentation, rather than convergence, as a sign
disquiet over its direction of development. of the field’s richness and vitality. For instance,
explaining firm heterogeneity, a long-standing
focus of the strategic management field, warrants
Keywords: literature reviews; paradigm; scholarly field; theoretical and methodological pluralism since
fragmentation, integration
*Correspondence to: Robert M. Grant, Bocconi Uni- differences among firms depend on many differ-
versity, Via Roengen 1, 20136 Milan, Italy. E-mail: ent factors. As such, steps to narrow theoretical
robert.grant@unibocconi.it diversity risk stifling new ideas, whereas steps to

Copyright © 2016 John Wiley & Sons, Ltd.


The Expanding Domain of Strategic Management Research 5
foster methodological coherence risk deterring established the foundations for strategic man-
the selection of the most appropriate methods agement as an accepted academic field within
for studying a given problem or phenomena. business schools (see Rumelt, Schendel, and
Importantly, both views advocate upgrading of Teece, 1991, 1994). For example, in 1969, the
scholarly standards with regard to both theory and American Assembly of Collegiate Schools of
empirical methodology. It is this contradictory Business (AACSB) revised accreditation standards
state of strategic management that provides the to include a capstone course that required students
background and the motivation for this special issue to integrate the knowledge gained from specialized
of SMJ. Reviews of strategic management research and function-specific courses. The business policy
were seen as having “the potential to make an course, with its focus on the work of general
important contribution to the literature both in managers, fulfilled this objective, conferring upon
appraising the current state of strategic manage- the emerging field a central role in the business
ment research and in providing a platform for the school curriculum (AACSB, 1969: 30; Hambrick
future development of the field” (Call for papers, and Chen, 2008). The ensuing demand for policy
2013). Inevitably, a special issue that comprises instructors spurred the development of doctoral
just six review articles can make only a limited con- programs in business policy and strategy in the
tribution to this task of appraisal and development. mid-1970s. Additionally, a conference of business
Hence, the purpose of our introductory essay is to policy scholars held in Pittsburgh in May 1977 is
set these articles within a broader context. Editing viewed as a key event in establishing strategic man-
this special issue—in particular, administering a agement as a discipline that integrated research,
selection process in which 186 initial submissions teaching, and management practice (Schendel and
were reduced to six final articles—provided us Hofer, 1979). The founding of Strategic Man-
the opportunity to ponder the state of the field of agement Journal (SMJ) in 1980 and the Strategic
strategic management and consider how reviews Management Society (SMS) in 1981, as well as
of strategy research might address some of the the Academy of Management’s renaming of its
criticisms levelled at the current state of the field Business Policy and Planning Division as the Busi-
and resolve aspects of the present predicament. In ness Policy and Strategy (BPS) Division in 1981
this introduction we address four questions: provided an infrastructure for the new discipline.
During this period, the range of phenomena and
1. How has the field evolved and what are the theories the field embraced were comparatively nar-
primary sources of domain expansion? row (for example, see Schendel and Hofer, 1979).
2. What is the field of strategic management and The primary research stream explored relationships
where do its boundaries lie? between context (especially industry structure),
3. What are the primary drivers of the field’s frag- strategy, and performance. Another prominent
mentation and how have they affected the field’s stream addressed strategy processes. The dominant
progress? context-strategy-performance stream drew heavily
4. How can reviews of strategy research contribute upon industrial organization economics (especially
to the integration of the field? the structure-conduct-performance model) together
with microeconomic concepts such as economies
We conclude with a broader consideration of the of scale and scope, transaction costs, and agency
kinds of initiatives needed to assist the advancement theory.
of strategic management through promoting cohe- Since the early 1980s, the phenomena researched
siveness and integration. and the theoretical and methodological tools
We begin by addressing the origins of the field’s deployed have expanded greatly. New areas
remarkable breadth and diversity. of research emerged, including: organizational
capabilities (including routines, processes, and
dynamic capability); interfirm relationships—both
THE EXPANDING DOMAIN competitive (competitive dynamics) and cooper-
OF STRATEGIC MANAGEMENT ative (including transaction costs, alliances, firm
networks, and business ecosystems); knowledge
Between the late 1960s and early 1980s, insti- creation and diffusion (including innovation,
tutional events and community development organizational learning, and best practice transfer);
Copyright © 2016 John Wiley & Sons, Ltd. Strat. Mgmt. J., 38: 4–16 (2017)
DOI: 10.1002/smj
6 R. Durand, R. M. Grant, and T. L. Madsen
behavioral strategy; institutional influences and cor- WHAT IS STRATEGIC MANAGEMENT?
porate social responsibility—to mention but a few.
The expanding scope of study has been facilitated The widening realm of strategic management
by the growing availability of new sources of data research is a tribute to the field’s dynamism, but it
at the micro and macro level (e.g., social networks creates uncertainty as to what strategic management
details, fMRI content, comprehensive industry and is and where its boundaries lie. A field of study
sector data, etc.), new compilations of data (e.g., may be characterized by the theory it deploys,
machine readable patent and company accounts the phenomena it investigates, and the community
it comprises. To what extent can strategic man-
data), technologies that ease the process of data col-
agement research be described—and, hopefully,
lection (e.g., pdf readers, data scraping programs),
circumscribed—by these three distinguishing
increasingly rigorous qualitative and quantitative characteristics?
methodologies, and novel analytical techniques
allowing for the systematic analysis of data that
previously could only be analyzed qualitatively Strategic management as theory
(e.g. textual analysis) (see Arora et al., 2016). From the beginning, strategic management has been
Bibliometric analysis identifies major themes in a multidisciplinary area of research. In addition
strategy research and confirms its widening scope. to borrowing heavily from economics, sociology,
Applying factor analysis to articles published in and psychology, it has imported concepts and the-
SMJ between 1980 and 1986, Nerur, Rasheed, ories from political science, evolutionary ecology
and Natarajan (2008) identified five major streams and biology, systems science, and philosophy. Its
within the literature: one based on organization eclecticism has been extended by the development
theory, one dominated by industrial organization; of its own concepts, theories, and research streams
one based upon agency theory; one centered upon including the resource-based and knowledge-based
views of the firm, behavioral strategy, competi-
the concept of strategy; and a process school
tive dynamics, competitive heterogeneity, coopera-
emphasizing organizational decision making.
tive strategy, corporate-level strategy, global strat-
During 1987–1993, the number of significant egy, industry dynamics and evolution, innovation
streams increased from five to eight, while during and technology strategy, institutional and nonmar-
1994–2000, an additional research stream based ket strategies, stakeholder theory, strategic change,
upon theories of the firm—the resource-based view strategic leadership, strategy as practice, and strat-
in particular—rose to prominence. The overall egy processes.
picture was one of “greater fragmentation arising Clearly, the strategic management field is far
from exogenous theoretical influences and endoge- from converging around any singular theoretical
nous theoretical developments” (Nerur et al., 2008: base. Not only has strategic management failed to
331). Don Hambrick observed that “The number evolve toward a single paradigm, the field seems to
of possible combinations of theoretical lenses and lack the “shared theoretical beliefs, values, instru-
interesting phenomena is staggering” (Hambrick, ments and techniques, and even metaphysics” (Bird,
2004: 92). 2013) that form the “disciplinary matrix” of estab-
As the domain of strategic management widened, lished scientific fields (Kuhn, 1970). It is also
so it has encroached on other fields of business and unclear whether strategic management possesses a
well-defined “research program”: a sequence of the-
management research. These include organizational
ories governed by “methodological rules” in the
structure and design, international management and
form of “what paths of research to avoid (negative
international business, technology management heuristic) and what paths to pursue (positive heuris-
and the economics of innovation, marketing, human tic)” together with a “hard core” of axioms sur-
resource management (“strategic human capital”), rounded by “auxiliary hypotheses” (Lakatos, 1968:
business ethics, government-business relations, 168–169).
entrepreneurship, and organizational behavior. As Yet, strategic management does display observ-
a result, the boundaries that distinguish strategic able research traditions—including those based
management from management as a whole have upon industrial organization economics, the
become increasingly difficult to discern. resource-based view, transaction costs, and agency
Copyright © 2016 John Wiley & Sons, Ltd. Strat. Mgmt. J., 38: 4–16 (2017)
DOI: 10.1002/smj
The Expanding Domain of Strategic Management Research 7
theories (Hoskisson et al., 1999)—even if these temporal dynamics (e.g. survival, rates of growth,
do not qualify as Kuhnian paradigms. Many addi- change, and profit persistence/convergence), as well
tional streams gained traction during the 1990s, as differences in outcomes (e.g., abnormal, rela-
and the present century has seen the continua- tive, or advantage-based profit measures). These
tion of conceptual and theoretical diversification traditional measures enhance our understanding of
reinforcing the field’s open, flexible, and pluralistic the supply side of value creation—relating a firm’s
nature. activities, resources, and capabilities to differences
Additionally, strategic management possesses in performance or outcomes. However, the total
unifying beliefs concerning what is to be observed, value created by a firm also includes the sur-
what questions to explore, how those questions are plus it provides to its customers. As a result, to
to be structured, and how the results of the inquiry develop a fuller understanding of competitive het-
are to be interpreted. These beliefs include: a focus erogeneity, scholars employ a bargaining model, the
on the organization (the business enterprise in par- Value-Price-Cost (VPC) framework, that encom-
ticular) as the primary level of analysis; recognition passes both the demand and supply side aspects
that organizations differ—in value creation, value of value creation. In this framework, the firm that
capture (firm performance), and value distribution, produces the largest difference between the value
as well as in intermediary outcomes such as, but it provides to the customer and the cost to pro-
not limited to, innovativeness, competitive inten- vide that value holds an advantage over rivals
sity, legitimacy, reputation, and status. An impor- (Besanko, Dranove, and Shanley, 1999; Hoopes,
tant character of strategic management as a field of Madsen, and Walker, 2003; Peteraf and Barney,
study is its emphasis on practical application. It is 2003; Priem, 2007; Ryall and Gans, this issue). This
this orientation toward the tasks and challenges of approach expands the focal phenomenon of analysis
general managers that has been an enduring feature to include value creation, value capture, and value
of the field since its origins in business policy. The distribution.
quest for solutions to the problems of general man- The quest to understand competitive hetero-
agers drives theoretical pluralism and implies that geneity also has motivated researchers to explore
the field of strategic management is defined as much its origins. This has spawned a broad stream of
by its subject matter as by the theory it deploys. research at multiple levels of analysis wherein the
traditional predictors of performance differences,
whether micro or macro, become the focal phenom-
Strategic management as a set of phenomena
ena of interest.
As noted above, firm performance—in particular, Recognizing that the value created by a firm com-
the origins of differences in performance among prises that received by a broad set of stakeholders
close competitors—is widely viewed as the fun- (e.g. employees, customers, suppliers, and commu-
damental domain that strategy addresses. Thus, nities) has implications for how value is defined
among the 2,125 strategy articles published in lead- and measured and the processes through which it
ing management journals from 1986 to 2005, “per- is distributed (Coff, 1999; Hillman and Keim, 2001;
formance” was the most prominent keyword used Hull and Rothenberg, 2008). It also means that these
(Furrer, Thomas, and Goussevskaia (2008). Among different stakeholders have an important influence
the 421 articles published in SMJ between 2009 and on firm strategy and performance (e.g., Durand and
2013, 46.1 percent involved dependent variables Vergne, 2015; Harrison, Bosse, and Phillips, 2010;
relating to three types of performance measures: Roberts and Dowling, 2002). The interacting play-
financial performance (37.5%), innovation (6.7%) ers comprise not only traditional industry partici-
or corporate social responsibility, stakeholder per- pants (e.g., competitors, suppliers, customers) but
formance or reputation (1.9%) (Wang and Reger, also other actors such as financial organizations,
2014). regulatory agencies, standard-setting institutions,
Over time, the analysis of differences in per- industry consortia, government institutions, NGOs,
formance among close competitors has evolved and so on. The diversity of competitive hetero-
beyond traditional operational dimensions such geneity’s origins, and their interrelationships, is so
as static or absolute metrics (e.g., financial or vast that the field’s scope of phenomena inevitably
accounting-based measures of profitability; pro- increases and fosters the development and growth
ductivity, etc.) to include constructs that attend to of new streams of research.
Copyright © 2016 John Wiley & Sons, Ltd. Strat. Mgmt. J., 38: 4–16 (2017)
DOI: 10.1002/smj
8 R. Durand, R. M. Grant, and T. L. Madsen
Strategic management as community addressing the problems faced by managers draws
many strategy scholars toward the normative appli-
To define the field of strategic management solely
cation of their knowledge and clinical engagement
by the theories it deploys and the topics it addresses
with practitioners. In sum, the community’s diver-
is to ignore its social dimensions. “Science is not
sity reinforces the field’s theoretical and analytical
a magnificent march toward absolute truth but a
eclecticism.
social struggle among scholars of the profession to
construct truth” (Cannella and Paetzold, 1994: 332).
The observation that “an academic field is a socially THE CURRENT
constructed entity” (Nag, Hambrick, and Chen, CHALLENGE—FRAGMENTATION
2007: 935) reflects Kuhn’s (1970: 176) recognition
that “Scientific communities can and should be The above conditions have opened the door for
isolated without recourse to paradigms.” almost any topic or phenomena to be categorized
In the case of strategic management, the for- as fitting within the strategy domain and, in turn,
mation and growth of a scholarly community was generate concerns over the field’s direction of devel-
central to its establishment as an academic field. opment. At the core of these concerns is the fear
According to Hambrick and Chen (2008), scholarly that fragmentation threatens the field’s capacity for
communities develop through three interrelated cohesive knowledge accretion. Let us examine this
processes of differentiation, resource mobiliza- problem using the three characteristics of the field
tion, and acquiring legitimacy (see also Abbott, discussed in the previous section.
2001). As the field’s evolution demonstrates, this
three-pronged process is apparent in the case of
strategic management. Both the BPS division Theory fragmentation
of the Academy of Management and the SMS Conventional paths to scientific progress typically
have experienced persistent growth since their involve the accumulation of knowledge where the-
founding and comprise international communities ories build upon and replace each other, possess
of strategy scholars. As they have grown, these coherence in theoretical structure—including lack
organizations also have supported the advance- of ambiguity regarding core concepts and their
ment of scholarly microcommunities. Although definitions—and become integrated within more
university departments named solely “strategy” or general, overarching frameworks through tests and
“business policy” are rare due to the aggregation of refutations (Hull, 2001; Popper, 1972). Most of
strategy, organization theory, and/or organizational strategic management’s theoretical traditions lack
behavior scholars into “strategy and organization” these attributes. Rather, the continued emergence of
or “strategy and management” departments, the new streams, which neither reconcile nor replace
discipline remains a robust component of under- existing theories, raises doubts over the progress
graduate, graduate and PhD programs, across within our field. For one, connections among the
universities worldwide. Its research is published various research streams often appear tenuous, giv-
in its flagship journal, SMJ, but also in other ing the impression that they are not guided by, or
outlets such as Academy of Management Journal, embedded in, an overarching structure or frame.
Administrative Science Quarterly, Management Strategy scholars offer multiple explanations for
Science, or Organization Science. Additionally, the strategic management’s failure to build an inte-
last 15 years have brought the founding of addi- grated, empirically validated knowledge base. One
tional strategy-focused journals such as Strategic view is that the burgeoning theoretical eclecticism
Organization and Strategy Science. simply stems from scholars’ quests for additional
Therefore, as a community, strategic manage- tools to analyze strategic phenomena. The ongoing
ment possesses strong and effective institutions that pursuit of theoretical novelty also has discouraged
foster identity and promote belonging. As already knowledge consolidation and synthesis (Agarwal
noted, central to this identity are priorities and traits and Hoetker, 2007; Cornelissen and Durand, 2012,
that distinguish strategic management from other 2014; Hambrick, 2004). This quest for theoretical
areas of management and organizational studies, innovation seems to be driven by “the field of man-
notably a practical orientation. For example, inter- agement’s devotion to theory” involving “idoliza-
est in improving organizational performance by tion” and “fetish” (Hambrick, 2007). Furthermore,
Copyright © 2016 John Wiley & Sons, Ltd. Strat. Mgmt. J., 38: 4–16 (2017)
DOI: 10.1002/smj
The Expanding Domain of Strategic Management Research 9
the journals’ insistence that articles make distinctive where the diversity of views will inhibit quality and,
theoretical contributions results in scholars building in turn, progress? Clearly, there are both benefits
theories that are premature, ad hoc, and/or incom- from and costs to theoretical pluralism; however,
mensurate. Hambrick (2004: 91) summarizes these given the proliferation of the theories developed and
concerns: “Our field is rapidly being pulled apart deployed by strategy researchers, we consider the
by centrifugal forces” and “suffers from the persis- current priority to be consolidation and theoretical
tent invention of theories designed to distance them- integration within the field1 .
selves from everything that came before.”
Although strategic management’s theoretical
Fragmentation: expanding phenomena
pluralism reflects the field’s intellectual dynamism
and analytical issues
and emphasis upon investigating phenomena, does
or will the absence of a dominant paradigm impede The persistent expansion of the range of phenomena
or facilitate the field’s development? Pfeffer (1993) studied by strategy scholars, when combined with
argued that consensus around a single paradigm theoretical and analytical issues, is a formidable
facilitates development within a field of study. In source of fragmentation within the field. For one,
contrast, other scholars reason that the progress the heterogeneity of phenomena explored leads
or evolution of knowledge requires management scholars to employ a wide variety of operational
studies to have “fuzzy boundaries” as well as designs and analytical approaches from qualitative
a receptivity toward a “plurality of paradigms” analyses of single firm case studies to quantitative
(Cannella and Paetzold, 1994: 332). Falsification analyses leveraging multiple integrated, longitudi-
in management studies—and in the social sciences nal, and archival data sources (of entire industries
more generally—is not always feasible (Foss, or fields). A second critical issue lies with the ten-
2012; Mahoney, 1993) since empirical studies, dency for scholars to generate new labels and def-
no matter how carefully designed and executed, initions for previously studied phenomena as well
rarely deter all alternative explanations. These as their affiliated theoretical concepts (Cornelissen
conditions inhibit determining which paradigm and Durand, 2012). When debates over concep-
“is a priori deserving of a dominant position” tual definitions persist beyond the early stage of a
(Cannella and Paetzold, 1994: 332). More impor- concept’s development (beyond their usefulness),
tantly, searching for an overarching paradigm they fuel fragmentation, rather than coherence, in a
encourages an “absolute conformism” (Mahoney, field’s knowledge base. A lack of theoretical inte-
1993: 178) and discourages diverse intellectual gration exacerbates this problem since it inhibits
views that have powered the field’s growth. As Dan convergence in the operationalization of theoreti-
Schendel (1994: 2) observed: “strategic manage- cal concepts. Indeed, the alignment between theory
ment is fundamentally an interdisciplinary subject, and construct design in our field’s empirical studies
a field of practice and application, whose perspec- often leaves much to be desired. As one example,
tives will shift and whose research approaches will the resource-based view is laden with empirical
be incommensurable, rendering it unlikely that a studies that espouse contributions to the theory of
single paradigm will ever govern the field”. As a competitive advantage, but lack any measure of it,
result, “the Kuhnian model may not be the best way as well as studies that employ macro constructs as
to think about the state of strategic management or “indicators” of resources or capabilities (Hoopes
assess its progress” (Rumelt et al., 1994: 1). and Madsen, 2008). Additionally, because some
Theoretical pluralism facilitated the development
of the strategic management field in the past, how-
1
ever, there is no guarantee that it will continue to do Mahoney and McGahan (2007: 80–84) identify four areas of
strategic management with potential for “integrative theory”: the
so. At some point, the sheer diversity of theoretical impact of context and structure on firm behavior and perfor-
traditions might hinder the advancement of knowl- mance; the analysis of competitive interaction that extends beyond
edge and, thus, warrant systematic action to main- conventional theories of industrial organization; theories of firm
behavior that integrate sociological, social psychology, and cog-
tain coherent progress. As the field enters its midlife nitive approaches; and linking strategy and firm performance to
phase, will its embrace of openness, multiple disci- managerial behavior within a multilevel theory of the firm. In
plines, and theoretical plurality pose challenges to addition, Durand (2014) identifies the adjacencies between strate-
gic management and organizational theory and the areas where
continued development? Is the marketplace of ideas each discipline would benefit from the other’s research advance-
now too broad? Or, is the field at a tipping point ments.

Copyright © 2016 John Wiley & Sons, Ltd. Strat. Mgmt. J., 38: 4–16 (2017)
DOI: 10.1002/smj
10 R. Durand, R. M. Grant, and T. L. Madsen
constructs can be used to measure different con- within the expanded community. These forces are
cepts in different traditions, this phenomenological apparent in the niche that organizational ecology
fragmentation nurtures theoretical fragmentation. established, separating it from both strategic
These conditions make it difficult to identify com- management and organizational sociology, more
mon patterns of results associated with a particular recently in the emergence of “strategy-as-practice”
phenomenon and, in turn, extract systematic conclu- as a distinct subfield within strategic management
sions that would inform the field’s “stylized facts” research (Carter, Clegg, and Kornberger, 2008),
or a unified knowledge core. Despite the advance- and in the proliferation of interest groups within
ment of empirical methods that facilitate more the SMS. Hence, there is a risk that strategic
robust investigation of complex patterns of causa- management becomes more a confederation of
tion (Arora et al., 2016), a lack of consensus around clans than a single community. The threat posed
a set of ground rules concerning empirical methods by this trend is that tight-knit academic clans often
and the interpretation of their results continues to act as gatekeepers, taking a protective stance over
limit the field’s capacity to accumulate verified their domains in efforts to control the intellectual
knowledge. Criticism of empirical methods and process of creation, publication, and diffusion. The
their application include the bias toward hypothe- outcome is likely to be a focusing of research efforts
sis confirmation, particularly through data mining around a narrow set of questions and problems,
and the search for theory that matches empirical which encourages scientific incrementalism. A
results (Bettis, 2012; Bettis et al., 2016; Goldfarb byproduct of this threat is the tendency for scholars
and King, 2016), a lack of replication studies (cru- to ignore phenomena that do not fit within any
cial to clarifying boundary conditions) (Bettis et al., single group’s domain but would benefit from work
2016; Tsang and Kwan, 1999), the problem of endo- at the intersection of domains.
geneity in empirical research (Hamilton and Nick-
However, scientific progress requires debate and
erson, 2003; Semadeni, Withers, and Trevis Certo,
disagreement among different schools of thought
2014), unreceptiveness to studies that document and
within a community (Kuhn, 1970). Building bar-
investigate phenomena rather than test hypotheses
riers by refining the field’s boundaries inhibits this
(Helfat, 2007), and problems presented by variables
process and, therefore, the evolution of knowledge.
that are unobservable and/or unmeasurable (Durand
In fact, the field’s nonlinear development appears
and Vaara, 2009; Godfrey and Hill, 1995).
to stem less from periods of stable discourse and
The above suggests that training and guidelines
are needed to encourage scholars to draw on, convergence and more from scholars’ efforts to
and contribute to, established conceptual and embrace alternative views, invoke distant knowl-
operational definitions in a cumulative way and edge, and challenge tradition through different
to foster coherence in operational designs to sup- paradigms. As Feyerabend (1983: 162) states:
port the replication and comparison of empirical “Great scientific advances are due to outside
results. This guidance is critical to balancing the interference which is made to prevail in the face of
advantages and disadvantages of analytical and the most basic and most rational methodological
methodological diversity. Graduate programs, rules.”
professional associations, and journals have a Although protective of their interests, strategy
key role in establishing and updating criteria scholars appear more tolerant of, or comfortable
for robust scientific inquiry, including guidance with, theoretical pluralism than not. This attribute
regarding theoretical and operational alignment, has enabled the field to retain its overall identity. In
data analysis, and methodological rigor. fact, the formal identification of subdomains within
SMS or conference sub-tracks within the BPS Divi-
sion’s annual program has opened up space for more
Community fragmentation scholars to become involved in shaping the field,
Although institutional forces initially promoted dampening perceptions that self-proclaimed elites
common ground within the strategy field, enabling control its direction.
community growth in numbers, international reach, The ongoing challenge is to ensure that the emer-
and scholar legitimacy, more recently these same gence of, and differentiation by, specialist sub-
forces appear to balkanize the field as particular groups does not undermine the cohesiveness of the
groups seek distinctive identity and legitimacy strategic management community as a whole. As
Copyright © 2016 John Wiley & Sons, Ltd. Strat. Mgmt. J., 38: 4–16 (2017)
DOI: 10.1002/smj
The Expanding Domain of Strategic Management Research 11
the number of strategic management scholars con- Our initial call invited proposals for papers in
tinues to grow and the diversity of theories and advance of full papers so that we could provide
phenomena within strategic management continues feedback on both the prospects for the proposed
to expand, so specialization into subfields is both paper and its contents. We encouraged papers that
inevitable and conducive to the advancement of addressed a major topic in strategic management
knowledge. Since establishing the identity for a research whether a phenomenon or a theoretical
subfield encourages differentiation and boundary stream; that offered integration, synthesis, or inter-
building, an ongoing challenge is ensuring that pretation of the literature in novel or meaning-
the field’s sub-communities avoid orthodoxy and ful ways; and that had the potential to stimulate
ideology and remain open to diverse knowledge and redirect future research into the topic. We dis-
sources. Thus, the same way that any organiza- couraged papers that addressed topics we viewed
tion’s division of labor necessitates coordination, as peripheral to the field, or of interest to only a
so knowledge accumulation in a scientific field small minority of strategy scholars, or which were
requires that the centrifugal forces of specialization limited to literature surveys—including purely bib-
and the quest for innovation and novelty are bal- liographic studies.
anced by the centripetal forces of openness to ideas The 186 original proposals generated 46 submit-
and findings, communication, and shared scholarly ted papers, which were reduced to six accepted arti-
norms. cles. Given all we have said about the widening
domain of the strategy field, such a small set of arti-
cles can make only a limited contribution toward
HOW REVIEWS OF STRATEGY integration and coherence within the strategy field.
RESEARCH CAN HELP INTEGRATE Nevertheless, we are optimistic that our special
THE FIELD issue can offer valuable pointers as to the path
ahead. Hence, drawing upon the articles included in
We have established that strategic management’s this issue, Table 1 specifies five ways (not intended
eclecticism is unlikely soon to conform to conven- as mutually exclusive) in which research reviews
tional notions of normal science, grouped around can contribute to counteracting the fragmentation
a core of tightly knit definitions and principles. challenges many scholarly fields encounter as they
Nonetheless, the current state of the field warrants grow and mature.
establishing standards for developing theory and
conducting empirical analysis as well as mecha- 1. Identifying and promoting theoretical develop-
nisms that facilitate integration among the different ments and empirical analyses that subsume and
specialists and sub-communities that populate the integrate multiple theoretical streams.
field. Moreover, while fluid boundaries character- Both Hambrick (2004) and Oxley, Rivkin,
ize the field and its subareas, future progress also and Ryall (2010) emphasize the need for
may require consensus on the type of phenomena contributions to strategy theory to build upon
that are best explored through the lenses of strategic preceding theories. This process corresponds
management and on those that are not. To this end, to Lakatos’s reformulation of Popper’s notion
SMJ is playing a leading role in promulgating norms of “series of theories superseding one another”
and expectations regarding the conduct of research as a progressive research program guided by
through editorial briefs, as well as special issues that the heuristic rule: “devise conjectures which
promote replication studies, advance proper meth- have more empirical content than their prede-
ods for empirical analysis and interpretation, and cessors” (Lakatos, 1968: 165–168). The value
attend to the intersection of research and practice. capture theory outlined by Ryall and Gans
From the outset, our primary goal for the spe- (this issue) exemplifies such progress. It has
cial issue was to contribute to the integration of the the potential to address “blindspots” in the
strategy field. But how can reviews of the research prevailing approaches to analyzing performance
topics and themes accomplish this intent? Initially, heterogeneity among firms including Porter’s
we were unsure; however, as the process pro- “five forces of competition” framework, the
gressed and the papers developed, the sources and resource-based view, and transaction cost eco-
potential benefits of such integration became more nomics. In doing so, the value capture model
apparent. provides a theoretical framework in which key
Copyright © 2016 John Wiley & Sons, Ltd. Strat. Mgmt. J., 38: 4–16 (2017)
DOI: 10.1002/smj
12 R. Durand, R. M. Grant, and T. L. Madsen
Table 1. Contributions of the Special Issue articles to integrating the field of strategic management

Source of fragmentation Opportunity for integration Examples from special issue

(1) Lack of a cumulative or Identifying and promoting Ryall and Gans: Value Capture
accretive theoretical theoretical developments and Model
development and empirical empirical analyses that subsume Dorobantu, Kaul, and Zelner:
analyses and integrate multiple theoretical Nonmarket strategies
streams
(2) Multiple theoretical streams Reconciling different theories and Zhao, Fisher, Lounsbury, and
and empirical findings that results that address the same Miller: Optimal Distinctiveness
address the same phenomena phenomena but with different, Cattani, Porac, and Thomas:
sometimes conflicting, Categories and Competition
predictions and outcomes McIntyre and Srinivasan:
Networks, Platforms and
Strategy
(3) Narrow-range theories that Applying a single theoretical Cattani, Porac and Thomas:
address specific phenomena or approach to a range of separate Categories and Competition
particular contexts but related phenomena Reuer and Trigeorgis: Real Options
Theory
(4) Developing new concepts and Extending and combining existing McIntyre and Srinivasan:
theory to address novel concepts, theories, and empirical Networks, Platforms, and
phenomena results of strategic management Strategy
research to analyze novel Dorobantu, Kaul and Zelner:
phenomena NonMarket Strategies
(5) Ambiguity and imprecision Building more precise, systematic Ryall and Gans: Value Capture
over theoretical constructs, the theory comprising clearly Model
relationships between them, defined concepts, explicit Zhao, Fisher, Lounsbury and
and their operational designs assumptions, and logically Miller: Optimal Distinctiveness
derived causal relationships to Reuer and Trigeorgis: Real Options
support cohesive empirical Theory
progress

aspects and empirical tests of these prevailing different, sometimes conflicting, predictions and
theories can be subsumed and integrated. outcomes.
By focusing upon a broad—and potentially A consequence of the multidisciplinary nature of
measurable—concept of value, the model also strategic management is that different theories
provides a basis for integrating and comparing based upon different disciplinary traditions
shareholder and stakeholder approaches to firm address the same phenomena—often with con-
goals. Likewise, Dorobantu, Kaul, and Zelner flicting predictions. The most striking example is
(this issue) revisit the nonmarket strategies the prediction of economics-based approaches to
literature and offer a typology, rooted in new strategy that differentiation is conducive to supe-
institutional economics, that synthesizes and rior firm performance, as compared with socio-
supersedes prior works. Their hope is to pro- logical approaches to strategy that emphasize the
vide a more complete and integrated set of advantages of legitimacy through conformity.
determinants of governance choices for organi- Yet, as Zhao, Fisher, Lounsbury and Miller (this
zations facing weak institutions either locally or issue) show, such seemingly incommensurable
internationally. Their governance-based frame- theories can be jointly deployed to provide a
work is applied to three broad categories of richer and more nuanced understanding of the
nonmarket strategies: organizational, collective, phenomenon. Cattani, Porac, and Thomas (this
and political. issue) also demonstrate the potential to integrate
2. Reconciling different theories and results different theoretical traditions in the study of
that address the same phenomena but with one strategic phenomena—market categories.
Copyright © 2016 John Wiley & Sons, Ltd. Strat. Mgmt. J., 38: 4–16 (2017)
DOI: 10.1002/smj
The Expanding Domain of Strategic Management Research 13
They show that the categorization of firms is creation and appropriation via the VPC model,
fundamental to the study of competition and mediation of market relationships by external
competitive advantage by identifying theoretical audiences and third parties, and characteriza-
bridges between the economic analysis of tion of market identity. Likewise, Reuer and
markets and industries, strategic group theory, Trigeorgis not only show how the three main
and socio-cognitive approaches to firm cate- approaches to real options analysis (real options
gories. Cattani et al., also pay careful attention to reasoning, real options valuation, and behavioral
multiple levels of analysis—firm, interfirm, and perspectives) can be used in combination, but
external audiences—which influence, through also how the theory can be applied to a vast range
market categories, how value can be created and of strategic phenomena, including core issues
distributed. McIntyre and Srinivasan (this issue) such as: “the drivers of firm heterogeneity and
grapple with reconciling disparate branches competitive advantage … , organizational form
of literature to advance our understanding of and associated build-borrow-buy decisions … ,
strategy in the context of platform-mediated cooperation vs. competition tradeoffs … , and
networks, where the generalizability of prior the role of headquarters in multinational firms”
empirical studies often has been limited due (Reuer and Trigeorgis, this issue).
to the unique attributes of different industry 4. Extending and combining existing concepts, the-
or ecosystem contexts. Their synthesis of the ories, and empirical results of strategic manage-
literature highlights prominent differences in ment research to analyze novel phenomena.
focus and analytical development among the The emergence of new phenomena offers a
three areas. For instance, industrial organization potent incentive for the development of new
studies on indirect network effects often “treat concepts and theory. As technologies reshape
the relationship between complementors and
markets and competition drives strategic inno-
firms as a ‘black-box’,” whereas studies by
vation among firms, new forms of strategic
strategy scholars explicitly consider this rela-
behavior and competitive interactions arise.
tionship from different vantage points (McIntyre
In recent decades these include new digital
and Srinivasan, this issue).
business models encompassing the sharing
3. Applying a single theoretical approach to a
economy, strategic patenting behavior, novel
range of separate but related phenomena.
forms of outsourcing and distributed innovation,
The proliferation of theory within strategic
management—encouraged, in part, by the con- mass customization, new approaches to product
vention that empirical papers should contribute bundling, and organizational arrangements that
to theory—has led to the development of theo- permit unprecedented flexibility and responsive-
ries with a narrow domain of application. These ness. The opportunities to exploit the network
theories contrast with those that yield predictions externalities resulting from digital technologies
across a wide range of phenomena. For example, have especially important implications for
economies of scope combined with transaction strategic behavior. As noted above, McIntyre
cost analysis offers succinct analysis of multiple and Srinivasan (this issue) extend and combine
dimensions of corporate scope. Similarly, the the literature from industrial organization eco-
resource-based view’s predictions concerning nomics, strategy and firm dynamics, and tech-
the rent-generating potential of resources and nology management, to analyze the phenomenon
capabilities apply to many different resource of platform-based competition. Dorobantu et al.
types and business contexts. The proliferation (this issue) utilize familiar tools of institutional
of situation-specific theories is the reverse economics—transaction costs in particular—to
of Popper’s notion of progress through new analyze the diversity of nonmarket strategies
theories having greater empirical content than that have emerged in recent years in response to
their predecessors. Several articles in our special complex regulative and institutional situations.
issue outline theoretical approaches that offer 5. Building more precise, systematic theory
predictions across a wide span of phenomena. comprising clearly defined concepts, explicit
Cattani et al. (this issue) provides a con- assumptions, and logically derived causal
vincing treatment of related phenomena that relationships to support cohesive empirical
had remained previously disconnected: value progress.
Copyright © 2016 John Wiley & Sons, Ltd. Strat. Mgmt. J., 38: 4–16 (2017)
DOI: 10.1002/smj
14 R. Durand, R. M. Grant, and T. L. Madsen
Advancement in a scholarly field requires con-
sensus as to what is known. Such consensus
involves lack of ambiguity over theoretical
concepts and the relationships between them,
alignment of theoretical concepts with their
operational designs, and selection of the
appropriate methods for analysis. This, in turn,
necessitates precisely defined concepts, explicit
assumptions, and logically derived causal
relationships. An important contribution of the
articles in this issue is in countering the fuzzi-
ness over concepts and theoretical relationships
that have hampered progress in strategic
management. This can be accomplished in Figure 1. Paradigmatic stages of scientific development:
multiple ways. For instance, Ryall and Gans’s an interfield positioning
(this issue) exposition of the value capture
model offers an analysis of profit determination
and interfirm performance differentials based integration within fields. Such syntheses can assist
upon a carefully specified, formally derived scholarly communities in distinguishing novel
theory of value determination. Although contributions from reformulations of existing
natural language is likely to continue to be the knowledge and determining whether these new
predominant means for describing concepts contributions clarify and advance, more than they
and their theoretical relationships, many phe- obfuscate and hinder scientific progress. By artic-
nomena we study in strategic management may ulating the state of knowledge in different subareas
lend themselves to formal modeling, whether of a field, reviews such as those presented in this
mathematical or simulation based. However, it issue, could help reveal lines of inquiry that would
is verbally reasoned theory where the need for benefit from replication studies, as well as those
precision is most pressing. Thus, an important that possess more systematic theoretical validity.
contribution of Zhao et al. (this issue) is to Research reviews do not offer a unique view of
recast the genealogy of an idea (optimal past research and the integration they provide is
distinctiveness), to reformulate it in more likely only to be piecemeal. Yet, they are able to
precise terms, and then to develop promising illuminate areas of a field where shared agreement
research questions within the reformulated exists in relation to two dimensions: (1) constructs
theoretical context. Opportunities also exist and their relational properties and (2) consistency in
for integrating formally derived and verbally the measurement of phenomena. Combining these
argued theories. Reuer and Trigeoris (this two dimensions leads to the four situations illus-
issue) identify three areas of real option theory: trated in Figure 1. As the upper-right quadrant of
real options reasoning, which uses verbal logic Figure 1 illustrates, convergence in both dimensions
to explore the sources of real options and their yields a dominant paradigm state—the prevailing
potential to create value; real options valuation, system relating theoretical constructs together with
which uses formal models; and behavioral operational designs to test deduced relationships
perspectives, which address implementation in a research area. In contrast, an area of study
questions. Because each approach is relevant is characterized as fragmented when it lacks both
to a different stage of the real options decision consistency in empirical measurement and shared
cycle, they demonstrate the complementarity agreement on causal associations among constructs
of the three approaches. (Figure 1, lower-left quadrant). Where convergence
exists around a single dimension, a state of partial
convergence exists. Thus, the lower-right quadrant
THE QUEST FOR INTEGRATION is a situation where different theories share broadly
consistent relationships, but operational designs for
Reviews of research, such as those included in testing these relationships vary. Such empirical
this issue, are a useful mechanism for fostering plurality arises from multiple sources—improper
Copyright © 2016 John Wiley & Sons, Ltd. Strat. Mgmt. J., 38: 4–16 (2017)
DOI: 10.1002/smj
The Expanding Domain of Strategic Management Research 15
use of methods, weak matching of theory with oper- ACKNOWLEDGEMENTS
ational designs, lack of attention to methodological
rigor and temporal effects, data availability and lim- The authors thank Connie Helfat, Will Mitchell,
itations, data mining, and heterogeneity in scholars’ Sendil Ethiraj, and Alfonso Gambardella for sug-
training and preferences, to name a few. Conversely, gestions and advice.
the upper-left quadrant is characterized by theoreti-
cal pluralism, but convergence in construct identifi-
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DOI: 10.1002/smj

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