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Investigating Strategic Renewal of Five Large Dutch Financial Services Firms

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  • Flier, B.
  • van den Bosch, F.A.J.
  • Volberda, H.W.
  • Baden-Fuller, C.W.F.

Abstract

How do large well-established firms renew themselves in an increasing turbulent environment? Is there a generic pattern of change or is each change journey rather idiosyncratic? We posed five questions about the nature of renewal patterns. First, how do firms combine external versus internal initiatives in a trajectory of strategic renewal? Second, how does the balance of competence building and competence leveraging evolve in a trajectory of strategic renewal? Third, what are the sequences of action in a strategic renewal process? Fourth, do firms differ regarding speed of their renewal processes? Finally, do different strategic renewal trajectories give rise to different of similar outcomes? Using a simple framework and new metrics we described and analyzed the strategic renewal journeys of the five largest financial service firms in the Netherlands during the period 1990-1997. We found equifinality in viable trajectories of strategic renewal. In four out of five firms, they result in similar outcomes due to mimetic behaviour. Nonetheless, one firm showed deviant strategic behaviour.

Suggested Citation

  • Flier, B. & van den Bosch, F.A.J. & Volberda, H.W. & Baden-Fuller, C.W.F., 2004. "Investigating Strategic Renewal of Five Large Dutch Financial Services Firms," ERIM Report Series Research in Management ERS-2004-032-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:1347
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    More about this item

    Keywords

    competence building vs. competence leveraging; financial services firms; strategic renewal;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics

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