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Probing the unobtrusive link: dominant logic and the design of joint ventures at General Electric

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  • Joseph Lampel
  • Jamal Shamsie

Abstract

Prahalad and Bettis (1986) have proposed that the successful management of highly diversified firms can be attributed to the concept of a corporate “dominant logic” that guides all of its business units. We argue that dominant logic addresses the problem of balancing the needs of business units against those of the corporation as a whole. We also suggest that the presence of a clear and consistent dominant logic must lead to a high degree of consistency in the strategic moves that are undertaken by each of the business units within the diversified firm. Based on a study of the joint ventures initiated by General Electric between 1984 and 1993, we show that the design of these ventures follows a pattern that is consistent with the presence and influence of dominant logic. Finally, we demonstrate that the early failure of joint ventures can generally be linked to a shift away from this dominant logic. Copyright © 2000 John Wiley & Sons, Ltd.

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  • Joseph Lampel & Jamal Shamsie, 2000. "Probing the unobtrusive link: dominant logic and the design of joint ventures at General Electric," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 593-602, May.
    • Handle: RePEc:bla:stratm:v:21:y:2000:i:5:p:593-602
    DOI: 10.1002/(SICI)1097-0266(200005)21:53.0.CO;2-0
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    2. Nemeth, Alexander & Nippa, Michael, 2011. "Revisiting research on IJV exit: More questions than answers," Freiberg Working Papers 2011/03, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    3. Dina Tomsic, 2013. "Towards A Relational View Of Corporate Governance," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 9(2), pages 71-88.
    4. Chris Huxham & Paul Hibbert, 2008. "Manifested Attitudes: Intricacies of Inter‐Partner Learning in Collaboration," Journal of Management Studies, Wiley Blackwell, vol. 45(3), pages 502-529, May.
    5. Linan Lei & Xiaobo Wu, 2022. "Thinking like a specialist or a generalist? Evidence from hidden champions in China," Asian Business & Management, Palgrave Macmillan, vol. 21(1), pages 25-57, February.
    6. Caren B Scheepers & Camrin Roberts Maher, 2019. "Leadership’s Thinking Process with Contextual Intelligence in Executing Diversification Strategy," Journal of Economics and Behavioral Studies, AMH International, vol. 11(1), pages 73-89.
    7. Oh, Chang Hoon & Shin, Jiyoung & Oetzel, Jennifer, 2021. "How does experience change firms' foreign investment decisions to non-market events?," Journal of International Management, Elsevier, vol. 27(1).
    8. Karpen, Ingo O. & Bove, Liliana L. & Lukas, Bryan A. & Zyphur, Michael J., 2015. "Service-Dominant Orientation: Measurement and Impact on Performance Outcomes," Journal of Retailing, Elsevier, vol. 91(1), pages 89-108.
    9. Alexander Nemeth & Michael Nippa, 2013. "Rigor and Relevance of IJV Exit Research," Management International Review, Springer, vol. 53(3), pages 449-475, June.

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