IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v11y2019i1p73-89.html
   My bibliography  Save this article

Leadership’s Thinking Process with Contextual Intelligence in Executing Diversification Strategy

Author

Listed:
  • Caren B Scheepers
  • Camrin Roberts Maher

Abstract

Diversification is a popular strategy for growth in response to a volatile economy. Current research, however, devotes little attention to the leadership required to ensure successful diversification, except for theoretical contributions on leaders’ thinking processes from scholars within the strategy discipline. This study thus conducted fieldwork in South African organisations to explore empirically how senior leaders’ thinking processes, demonstrating contextual intelligence, contributing to successful diversification. A qualitative study was conducted by collecting data through semi-structured interviews from 15 executives with an average of 21 years’ experience in senior management roles, who had been involved in diversification in South Africa. A critical incident interview technique was used, and interviewees offered examples of how they changed their way of thinking in creating an environment for successful diversification. The analysis revealed that continuous change was required to successfully implement a diversification strategy. Leaders demonstrated specific thinking processes, for example: being intently aware of their context, they filtered and compared this information to their schema or preconceived cognitive representations. In case of a mismatch, they changed their way of thinking; and directed contextual information to challenge others’ current way of thinking. Surprising findings included leaders’ sensing other’s emotions and appealing to these through storytelling to elicit support for their diversification. Diversification requires organisations to invest in developing the agility and global perspective of leadership to increase awareness of trends in their context, their own biases and to shift their mindsets as well as purposefully challenging other’s thinking.

Suggested Citation

  • 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.
  • Handle: RePEc:rnd:arjebs:v:11:y:2019:i:1:p:73-89
    DOI: 10.22610/jebs.v11i1(J).2750
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/2750/1810
    Download Restriction: no

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/2750
    Download Restriction: no

    File URL: https://libkey.io/10.22610/jebs.v11i1(J).2750?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard A. D'Aveni & Giovanni Battista Dagnino & Ken G. Smith, 2010. "The age of temporary advantage," Strategic Management Journal, Wiley Blackwell, vol. 31(13), pages 1371-1385, December.
    2. Sandy Q. Qu & John Dumay, 2011. "The qualitative research interview," Qualitative Research in Accounting & Management, Emerald Group Publishing Limited, vol. 8(3), pages 238-264, August.
    3. Spiggle, Susan, 1994. "Analysis and Interpretation of Qualitative Data in Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(3), pages 491-503, December.
    4. 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.
    5. Richard A. Bettis & C. K. Prahalad, 1995. "The dominant logic: Retrospective and extension," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 5-14.
    6. Ithai Stern & Andrew D. Henderson, 2004. "Within‐business diversification in technology‐intensive industries," Strategic Management Journal, Wiley Blackwell, vol. 25(5), pages 487-505, May.
    7. C. K. Prahalad & Richard A. Bettis, 1986. "The dominant logic: A new linkage between diversity and performance," Strategic Management Journal, Wiley Blackwell, vol. 7(6), pages 485-501, November.
    8. Bowen, Harry P. & Baker, H. Kent & Powell, Gary E., 2015. "Globalization and diversification strategy: A managerial perspective," Scandinavian Journal of Management, Elsevier, vol. 31(1), pages 25-39.
    9. Thomas Hutzschenreuter & Julian Horstkotte, 2013. "Performance effects of top management team demographic faultlines in the process of product diversification," Strategic Management Journal, Wiley Blackwell, vol. 34(6), pages 704-726, June.
    10. Pitelis, Christos (ed.), 2002. "The Growth of the Firm: The Legacy of Edith Penrose," OUP Catalogue, Oxford University Press, number 9780199248520.
    11. Yasemin Y. Kor & Huseyin Leblebici, 2005. "How do interdependencies among human‐capital deployment, development, and diversification strategies affect firms' financial performance?," Strategic Management Journal, Wiley Blackwell, vol. 26(10), pages 967-985, October.
    12. H. I. Ansoff, 1958. "A Model for Diversification," Management Science, INFORMS, vol. 4(4), pages 392-414, July.
    13. Richard A. Bettis & Michael A. Hitt, 1995. "The new competitive landscape," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 7-19.
    14. Vasudevan Ramanujam & P. Varadarajan, 1989. "Research on corporate diversification: A synthesis," Strategic Management Journal, Wiley Blackwell, vol. 10(6), pages 523-551, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guerras-Martín, Luis Ángel & Ronda-Pupo, Guillermo Armando & Zúñiga-Vicente, José Ángel & Benito-Osorio, Diana, 2020. "Half a century of research on corporate diversification: A new comprehensive framework," Journal of Business Research, Elsevier, vol. 114(C), pages 124-141.
    2. Ming zhu Wang, 2023. "Changes in industry and corporate effects in the United States, 1978–2019," Strategic Management Journal, Wiley Blackwell, vol. 44(2), pages 477-490, February.
    3. Foss, Nicolai J. & Klein, Peter G. & Kor, Yasemin Y. & Mahoney, Joseph T., 2006. "Entrepreneurship, Subjectivism, and the Resource-Based View: Towards a New Synthesis," Working Papers 06-0121, University of Illinois at Urbana-Champaign, College of Business.
    4. Piaskowska, D., 2005. "Essays on firm growth and value creation," Other publications TiSEM 89053610-79c6-4c52-9d1c-6, Tilburg University, School of Economics and Management.
    5. Yi, Yaqun & He, Xiaoming & Ndofor, Hermann Achidi & Niu, Fangyan, 2024. "Shared business understanding and innovation: The role of firm dominant logic in business model innovation," Technovation, Elsevier, vol. 138(C).
    6. Müller-Stewens, Günter & Stonig, Joachim, 2023. "Auf dem Weg zum Stakeholder-Kapitalismus: Merkmale und Konsequenzen einer sich verändernden institutionellen Logik," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 77(4), pages 316-333.
    7. Alessandra Storlazzi, 2009. "Market-Driven Management and Global Economies of Scale," Symphonya. Emerging Issues in Management, Niccolò Cusano University, issue 2 Market-.
    8. Serge Lenga, 2013. "Un effet modérateur des processus cognitifs de l'entrepreneur sur les opportunités d'affaires situées dans l'espace géographique," Working Papers hal-00832027, HAL.
    9. Pant, Laxmi Prasad, 2016. "Paradox of mainstreaming agroecology for regional and rural food security in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 305-316.
    10. Filipe M. Santos & Kathleen M. Eisenhardt, 2005. "Organizational Boundaries and Theories of Organization," Organization Science, INFORMS, vol. 16(5), pages 491-508, October.
    11. Washington, Marvin & Patterson, Karen D.W., 2011. "Hostile takeover or joint venture: Connections between institutional theory and sport management research," Sport Management Review, Elsevier, vol. 14(1), pages 1-12, February.
    12. Pursey Heugens & Nikolay Dentchev, 2007. "Taming Trojan Horses: Identifying and Mitigating Corporate Social Responsibility Risks," Journal of Business Ethics, Springer, vol. 75(2), pages 151-170, October.
    13. Manral, Lalit & Harrigan, Kathryn R., 2018. "The logic of demand-side diversification: Evidence from the US telecommunications sector, 1990–1996," Journal of Business Research, Elsevier, vol. 85(C), pages 127-141.
    14. M H Kunc & J D W Morecroft, 2009. "Resource-based strategies and problem structuring: using resource maps to manage resource systems," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(2), pages 191-199, February.
    15. Ko, Young Jin & O'Neill, Hugh & Xie, Xuanli, 2021. "Strategic intent as a contingency of the relationship between external knowledge and firm innovation," Technovation, Elsevier, vol. 104(C).
    16. Henk W. Volberda & Nicolai J. Foss & Marjorie A. Lyles, 2010. "PERSPECTIVE---Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field," Organization Science, INFORMS, vol. 21(4), pages 931-951, August.
    17. Miguel Pina e Cunha & Joao Vieira da Cunha & Ken Kamoche, 2000. "The age of emergence: toward a new organizational mindset," Nova SBE Working Paper Series wp382, Universidade Nova de Lisboa, Nova School of Business and Economics.
    18. Florence Allard-Poesi, 1998. "Representations And Influence Processes In Groups: Towards A Socio-Cognitive Perspective On Cognition In Organization," Post-Print hal-01490579, HAL.
    19. Gyan, Alex Kwaku & Brahmana, Rayenda & Bakri, Abdul Karim, 2017. "Diversification strategy, efficiency, and firm performance: Insight from emerging market," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1103-1114.
    20. Stephen Downing, 2005. "The Social Construction of Entrepreneurship: Narrative and Dramatic Processes in the Coproduction of Organizations and Identities," Entrepreneurship Theory and Practice, , vol. 29(2), pages 185-204, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arjebs:v:11:y:2019:i:1:p:73-89. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jebs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.