Handbook of Research on Competitive Strategy

In recent years, competitive strategy has become a key element of strategic management. Yet, this stream of research has grown quickly and developed many different branches organised around specific theories and applications that are of great importance for both corporate practice and research. Relevant studies such those of Miles and Snow (1978), Porter (1980, 1985, 1990), Rumert et al. (1994), or Barney(2002), are some examples of the theoretical works that constitute the fundamental pillars of the strategic management literature.

Aiming to present a comprehensive stat‐of‐the‐art of current strategic management practices, the Handbook or Research on Competitive Strategy is specially addressed to executives, managers, students and scholars, who are interested in both conceptual and empirical advancements in the field of competitive strategy.

The handbook is divided into five parts following a compelling organisational logic:

1. 1.

   Origins and developments.

2. 2.

   Theoretical approaches.

3. 3.

   Advanced topics.

4. 4.

   Methodological issues.

5. 5.

   Looking into the future at the intersection between research and practice of competitive strategy.

Part II (“Theoretical approaches informing competitive strategy research”) provides the reader with a detailed analysis of the most important and up‐dated topics in competitive strategy research. Chapter 6 opens this section with an article entitled “The role of resource‐based theory (RBT) in strategic management studies: managerial implications and hints for research” written by J.B. Barney, V. Della Corte, M. Sciarelli and A. Arikan. This is an extensive article wherein the most important strategic theory of the firm is described. The second article (Chapter 7) “The mind of the strategist and the eye of the beholder: the socio‐cognitive perspective in strategy research” by V.P. Rindova, R.K. Reger and E. Dalpiz summarises the current strategy research but considering the effects that socio‐cognitive processes and structures may have on the strategic behaviour of firms and their environment. Next article (Chapter 8), “The management of growth strategies in firm networks: a stylized model of opportunity discovery via network ties” written by S. Ferriani and A. Giuliani, suggests a model based on a conceptual framework that brings together social networks concepts and the theories on economics of opportunities (De Carolis and Saparito, 2006). The fourth article (Chapter 9) “Strategy‐as‐practice: untangling the emergence of competitive positions” by P. Regner states that the strategy‐as‐practice approach is based on the “practice turn” in social theory, related to issues concerning human actions, acting and interactions and their relation to institutions (Giddens, 1984). The article written by F. Garraffo and G. Lee in Chapter 10, (“Competitive dynamics stimulated by pioneers' technological innovation: a theoretical framework”) closes this Part. This article makes a comprehensive literature review on pioneers or first‐mover market advantages and interfirm rivalry and competition. It also proposes a theoretical framework based on the factors that drive competitive dynamics stimulated by pioneers' technological innovation.

Part III consists of seven articles that deal with original and advanced approaches on competitive strategy. Chapter 11, “The evolving role of mergers and acquisitions in competitive strategy research” by O. Meglio and A. Capasso focuses on the role of strategic mergers and acquisitions (M&As) as a good alternative for a sustaining competitive strategy. A. Ariño and E. García‐Canal are the authors of the paper “Strategic implications of alliance formation and dynamics: a comprehensive review” (Chapter 12). Here, the authors analyse the exponential growing attention that strategic alliances and cooperative agreements have gained among researchers over the last 30 years. Several relevant topics are then discussed such as the logic of alliance formation, their governance form, as well as dynamic and performance issues. The next article (Chapter 13) is “Innovation and technology management in competitive strategy research” written by B. Cassiman and M.C. Di Guardo. This work provides an interesting approach to the open innovation paradigm, more specifically, motivations and modes. Chapter 14 entitled ‘Corporate governance issues in competitive strategy research’ by I. Filatotchev, investigates corporate governance and the firm's competitive strategy. The authors go through the characteristics that the board of directors should hold, the best way of making strategic decisions at corporate level, performance and roles of block‐holders and shareholder activism, and lastly, contingencies and complementarities of these topics. M. Sorretino is the author of Chapter 15 (“Entrepreneurial issues in competitive strategy research’). This article links the entrepreneurial behaviour and capabilities with the achievement of competitive advantages in the current uncertain and quickly‐changing environment, both in new ventures and in internal corporate ventures. Next article (Chapter 16), ‘Family business and competitive strategy research’ written by G.M. D'Allura and A. Minichilli, analyses the attractive field of research of family owned business. This type of firm has distinctive resources (Habberson et al., 2003) following the RBV and related to the concept of familiness (as a systemic influence generated by the interaction of the family unit, the business institution and the individual family members). Chapter 17, ‘Multinational firms and competitive strategy research’, is written by G.D. Santangelo, who studies how multinational enterprises (MNEs) generate sustainable competitive advantages. Firstly, the article reviews the literature on MNE under a competitive strategy approach. Secondly, it explains the internal and external network as features of MNEs competitive strategy. Resulting from the analysis, the editor of this handbook states that “this stream has recently witnessed the launch of the Global Strategy Journal”.

Part IV (“Methodological issues in competitive strategy research”) comprises three extremely and useful articles for scholars and researchers. The first one (Chapter 18), “The use of quantitative methodologies in competitive strategy research”, is authored by R. Ragozzino. A. Chintakananda and J.J. Reuer, and presents an exhaustive survey of quantitative methodologies used in strategy research from 1990 to 2005. They provide methodological advances undertaken in this field. Next article (“Semiotic methods and the meaning of strategy in firm annual report”, Chapter 19) is written by M.C. Cinici and R.L.L. Dunbar, and studies the written competitive strategy described in firms' annual reports using semiotic methods (Greimas, 1970). Lastly, Chapter 20, “The role and impact of computer simulation modelling in competitive strategy research” by J. R. Harrison and G. Walker, reviews the use of simulation modelling in a high competitive strategy research. The authors conclude that its main advantage is the inclusion of complex and dynamic nature of strategies, as well as an analytical tractability, besides the existence of some empirical constraints.

Part V, “Competitive strategy at the intersection between research and practice: a look into the future” closes the handbook, unveiling stimulating and powerful lines of research. The first article, (“The management of trust in competitive strategy research: why it is important and what is new”, Chapter 21), is written by S. Castaldo and K. Premazzi, and deepens into the meaning and role of trust in the current networking economy. The authors define the concept of trust, typologies, value and how to develop and empower the drivers of trust. R. Casadesus‐Masanell and J.E. Ricart are the authors of the second article (Chapter 22) “Competing through business models”. Nowadays, many firms gain competitive advantages through business model innovation due to a complex environment. Business model (known as “the way the firms operate” or a set of polices, assets and governance, and its consequences) is a good opportunity for firms to innovate. The next article (Chapter 23) is entitled “Coopetition: nature, challenges, and implications for firms' strategic behavior and managerial mindset” by G.B. Dagnino, M.C. Di Guardo, and G. Padula. This article provides analytical insights on the concept of coopetition (as a synthesis between competition and co‐operation) and its limitations. In chapter 24 (“Crossing boundaries between contemporary research in strategy and finance: connecting the firm's financial structure and competitive strategy”) M. La Rocca and E.T. La Rocca suggest that a convenient integration of finance and strategy decision can lead to the development of successful strategies. Next article (“Does firm ownership matter? Investors, corporate governance and strategic competitiveness in privately‐held firms”, Chapter 25) is written by R. Faraci and W. Shen, and concludes that corporate ownership is a relevant factor, which affects the firm's competitiveness. Here the authors explore the interactions and challenges of firm's ownership, governance boundaries and strategic management of privately‐held organisations. Finally, chapter 26, “Competitive strategy research's impact on practice” by C. Markides, proposes new ways of enhancing the influence of strategy research onto practice. This article presents fresh and motivating ideas in the academic field (research and teaching) to improve the role of strategic management research.

In my opinion, this handbook is a stimulating book that will contribute to develop the research in competitive strategy. It is indeed a complete work that provides both basic and the newest ideas in this field of expertise. I consider that the major strength of this handbook is the comprehensive survey of the current strategic management research and the future research avenues that are outlined. It also enhances the nature and process of competitive strategy emergence and development.

To sum up, this is an excellent handbook since competitive strategy research is a field that has grown quickly and developed many different branches. The book offers the latest research for scholars and students, as well as thought‐provoking ideas about competitive strategy. Furthermore, managers may also benefit of this handbook since it contains useful information and research to ultimately achieve success in their firms.