Professor Donald C. Hambrick
Office: 414 Business Building
Phone: 863-0917
E-mail: dch14@psu.edu
Course Description
This course involves a critical review of theory and research in the field of strategic management. The
scope of the course is comprehensive, encompassing the following domains: strategic content, strategic
processes, top executives, and corporate governance. Particular emphasis is placed on empirical study of
strategic issues.
The course is intended primarily for doctoral students who expect to conduct research in strategic
management or related areas (e.g., organizational behavior, marketing strategy, corporate finance,
industrial organization, sociology of organizations, organization theory, or complex decision making).
Each week we will examine a sub-field of strategic management. Our approach will typically involve
reading the seminal works (or recent summaries or syntheses) on the topic and examining in depth
several empirical works.
Requirements
Each student will write a fully-developed proposal for an empirical study; the proposal may deal with any
topic/question within the overall domain of strategic management. The proposal is expected to include 1)
conceptual and literature background, 2) theory development and hypotheses, and 3) methodology.
There will be a take-home final examination consisting of several questions of an integrative nature.
Overall grading criteria are as follows:
Class participation (including leading research critiques) 1/3
Research proposal 1/3
Final exam 1/3
Readings
Course materials consist of excerpts from several books and numerous articles/papers.
1. Overview and Origins of the Field of Strategic Management
Andrews, K.R., 1971. The Concept of Corporate Strategy. (Chapters 1 and 2). Irwin.
Schendel, D.E. & Hofer, C.W., 1979. Strategic Management: A new view of business policy and planning.
(1-22, 515-530). Little Brown.
Evered, R., 1980. "Review of Schendel and Hofer." Administrative Science Quarterly, 536-543.
Rumelt, R.P., Schendel, D., & Teece, R.J., 1994. "History of strategic management," Fundamental Issues
in Strategy: A research agenda. (9-24). HBS Press.
Hoskisson, R., Hitt, M., Wan, W., & Yiu, D., 1999. "Theory and research in strategic management: Swings
of a pendulum." Journal of Management, 417-456.
Nag, R., Hambrick, D.C., & Chen, M.J., 2007. "What is strategic management, really? Inductive derivation
of a consensus definition of the field." Strategic Management Journal, 935-955.
Hambrick, D.C. & Chen, M.J., 2008. "New academic fields as admittance-seeking social movements: The
case of strategic management." Academy of Management Review, 32-54.
2. Conceptualizing and Operationalizing Strategy
Chandler, A.D., 1962. Strategy and Structure: Chapters in the History of American Industrial Enterprise.
(1-113). MIT
Miles, R.E. and Snow, C.C., 1978. Organizational Strategy, Structure and Process. (Read chapters 1-4;
skim chapters 5-7). McGraw-Hill
Mintzberg, H., 1978. "Patterns in strategy formation." Management Science, 934-948.
Snow, C.C. and Hambrick, D.C., 1980. "Measuring organizational strategies: Some theoretical and
methodological problems." Academy of Management Review, 527-538.
Inkpen, A. and Choudhury, N., 1995. "The seeking of strategy where it is not: Towards a theory of
strategy absence." Strategic Management Journal, 313-323.
Porter, M.E., 1996. "What is strategy?" Harvard Business Review, 61-78.
Siggelkow, N., 2002. "Evolution toward fit." Administrative Science Quarterly, 125-159.
Hambrick, D.C. and Fredrickson, J.W., 2005. "Are you sure you have a strategy?" Academy of
Management Executive, 51-62 (skim).
3. Industrial Organization Economics View of Strategy
Porter, M.E., 1980. Competitive Strategy: Techniques for Analyzing Industries and Competitor Analysis.
(Chapters 1-3). Free Press.
Porter, M.E., 1981. "The contributions of industrial organization to strategic management." Academy of
Management Review, 609-620.
Schmalensee, R., 1985. "Do markets differ much?" American Economic Review, 341-351.
Cool, K.O. & Schendel, D., 1987. "Strategic group formation and performance: The case of the U.S.
pharmaceutical industry, 1963-1982." Management Science, 1102-1124.
Rumelt, R.P., 1991. "How much does industry matter?" Strategic Management Journal, 167-185.
Cool, K. and Dierickx, I., 1993. "Rivalry, strategic groups and firm profitability." Strategic Management
Journal, 47-59.
Powell, T.C., 1996. "How much does industry matter? An alternative empirical test." Strategic
Management Journal, 323-334.
4. Resource-Based View of Strategy
Wernerfelt, B., 1984. "A resource-based view of the firm." Strategic Management Journal, 171-180.
Barney, J., 1991. "Firm resources and sustained competitive advantage." Journal of Management, 99120.
Peteraf, M.A., 1993. "The cornerstones of competitive advantage: A resource-based view." Strategic
Management Journal, 179-191.
Mehra, A., 1996. "Resource and market based determinants of performance in the U.S. banking industry."
Strategic Management Journal, 307-322.
Eisenhardt, K.M. & Martin, J.A., 2000. "Dynamic capabilities: What are they?" Strategic Management
Journal, (Special Issue) 1105-1121.
Priem, R. & Butler, J., 2001. "Is the resource-based view a useful perspective for strategic management
research?" Academy of Management Review, 22-40.
Adner, R. & Helfat, C.R., 2003. "Corporate effects and dynamic managerial capabilities." Strategic
Management Journal, 1011-1025.
5. Schumpeterian/Dynamic View of Strategy
MacMillan, I.C., McCaffery, M.L. & Van Wijk, G., 1985. "Competitors' responses to easily imitated new
products - Exploring commercial banking product introductions." Strategic Management Journal, 75-86.
D'Aveni, R., 1994. (Introduction) Hypercompetition: Managing the dynamics of strategic maneuvering. (136). Free Press.
Jacobson, R., 1992. "The 'Austrian' school of strategy." Academy of Management Review, 782-807.
Chen, M-J, Smith, K.G., & Grimm, C.M., 1992. "Action characteristics as predictors of competitive
responses." Management Science, 439-455.
Ferrier, W.J., Smith, K.G., & Grimm, C.M., 1999. "The role of competitive action in market share erosion
and industry dethronement: A study of industry leaders and challengers." Academy of Management
Journal, 372-388.
McNamara, G., Vaaler, P.M., and Devers, C., 2003. "Same as it ever was: The search for evidence of
increasing hypercompetition." Strategic Management Journal, 261-278.
Chen, M-J., Su, K-H., and Tsai, W., 2007. "Competitive tension: The awareness-motivation-capability
perspective." Academy of Management Journal, 101-118.
6. Learning and Knowledge-Based View of Strategy
Lieberman, M., 1984. "The learning curve and pricing in the chemical processing industries." Rand
Journal of Economics, 213-228.
Cohen, W.M. & Levinthal, D.A., 1990. "Absorptive capacity: A new perspective on learning and
innovation." Administrative Science Quarterly, 128-152.
Mowery, D.C., Oxley, J.E., and Silverman, B.S., 1996. "Strategic alliances and interfirm knowledge
transfer." Strategic Management Journal, 77-91.
Haleblian, J. & Finkelstein, S., 1999. "The influence of organizational acquisition experience on
acquisition performance: A behavioral learning perspective." Administrative Science Quarterly, 29-56.
Hayward, M.L.A., 2002. "When do firms learn from their acquisition experience? Evidence from 19901995." Strategic Management Journal, 21-39.
Benner, M.J. & Tushman, M., 2002. "Process management and technological innovation: A longitudinal
study of the photography and paint industries." Administrative Science Quarterly, 676-706.
Zollo, M. & Singh, H., 2004. "Deliberate learning in corporate acquisitions: Post-acquisition strategies and
integration capability in U.S. bank mergers." Strategic Management Journal, 1233-1256.
7. Corporate-Level Strategy: Product-Market Diversification
Rumelt, R.P., 1974. Strategy, Structure, and Economic Performance. (1-127). Harvard.
Rumelt, R.P., 1982. "Diversification strategy and profitability." Strategic Management Journal, 359-369.
Prahalad, C.K. and Bettis, R.A., 1986. "The dominant logic: A new linkage between diversity and
performance." Strategic Management Journal, 485-501.
Palich, L.E., Cardinal, L.B., & Miller, C.C., 2000. "Curvilinearity in the diversification-performance linkage:
An examination of over three decades of research." Strategic Management Journal, 155-174.
Bowman, E.H. & Helfat, C.E., 2001. "Does corporate strategy matter?" Strategic Management Journal, 123.
Chakratarti, A., Singh, K., & Mahmood, I., 2007. "Diversification and performance: Evidence from east
Asian firms." Strategic Management Journal, 101-120.
8. Corporate-Level Strategy: Altering the Scope of the Firm
Duhaime, I.M. & Grant, J.H., 1984. "Factors influencing divestment decision-making: Evidence from a
field study." Strategic Management Journal, 301-318.
Bethel, J.E. & Liebeskind, J., 1993. "The effects of ownership structure on corporate restructuring."
Strategic Management Journal, 15-31.
Wiersema, M.F. & Bantel, K.A., 1992. "Top management team demography and corporate strategic
change." Academy of Management Journal, 91-121.
Capron, L., Mitchell, W., & Swaminathan, A., 2001. "Asset divestiture following horizontal acquisitions: A
dynamic view." Strategic Management Journal, 817-844.
Capron, L. and Pistre, N., 2002. "When do acquirers earn abnormal returns?" Strategic Management
Journal, 781-794.
Hayward, M.L.A. & Shimizu, K., 2006. "De-commitment to losing strategic action: Evidence from the
divestiture of poorly performing acquisitions." Strategic Management Journal, 541-557.
McNamara, G.M., Haleblian, J., and Dykes, B.J., 2008. "The performance implications of participating in
an acquisition wave: Early mover advantages, bandwagon effects, and the moderating influence of
industry characteristics and acquirer tactics." Academy of Management Journal, 113-130.
9. International Strategy
Kobrin, S., 1991. "An empirical analysis of the determinants of global integration." Strategic Management
Journal, 17-31.
Mitchell, W., Shaver, J.M., & Yeung, B., 1992. "Getting there in a global industry: Impacts on performance
of changing international presence." Strategic Management Journal, 419-432.
Birkinshaw, J., Morrison, A., & Hulland, J., 1995. "Structural and competitive determinants of a global
integration strategy." Strategic Management Journal, 637-655.
Gupta, A., & Govindarajan, V., 2000. "Knowledge flows within multinational corporations." Strategic
Management Journal, 473-496.
Vermeulen, F. & Barkema, H., 2002. "Pace, rhythm, and scope: Process dependence in building a
profitable multinational corporation." Strategic Management Journal, 637-653.
Frynas, J.G., Mellahi, K., & Pigman, G.A., 2006. "First mover advantages in international business and
firm-specific political resources." Strategic Management Journal, 321-345.
10. Top Executives and the Upper-Echelons Perspective
Hambrick, D. & Mason, P., 1984. "Upper echelons: The organization as a reflection of its top managers."
Academy of Management Review, 193-206.
Eisenhardt, K.M. & Schoonhoven, C.B., 1990. "Organizational growth: Linking founding team, strategy,
environment, and growth among U.S. semiconductor ventures, 1978-1988." Administrative Science
Quarterly, 504-529.
Finkelstein, S. & Hambrick, D.C., 1990. "Top management team tenure and organizational outcomes: The
moderating role of managerial discretion." Administrative Science Quarterly, 484-503.
Barsade, S.G., Ward, A.J. Turner, J.D.F. and Sonnenfeld, J.A., 2000. "To your heart's content: A model of
affective diversity in top management teams." Administrative Science Quarterly, 802-836.
Carpenter, M.A., Sanders, W.G., & Gregersen, H.B., 2001. "Bundling human capital with organizational
context: The impact of international assignment experience on multinational firm performance and CEO
pay." Academy of Management Journal, 493-511.
Hambrick, D.C., 2005. "Upper echelons theory: Origins, twists and turns, and lessons learned," in K.G.
Smith and M.A. Hitt (eds.), Great Minds in Management: The Process of Theory Development, 109-127.
Chatterjee, A. & Hambrick, D.C., 2007. "It's all about me: Narcissistic CEOs and their effects on company
strategy and performance. Administrative Science Quarterly, 351-386.
11. Governance and Agency Theory
Fama, E., 1980. "Agency problems and the theory of the firm." Journal of Political Economy, 288-307.
Morck, R., Shleifer, A., & Vishny, R., 1988. "Management ownership and market valuation: An empirical
analysis." Journal of Financial Economics, 293-315.
Hambrick, D.C. & Finkelstein, S., 1995. "The effects of ownership structure on conditions at the top: The
case of CEO pay raises." Strategic Management Journal, 175-193.
Dalton, D., Daily, C., Ellstrand, A., & Johnson J., 1998. "Meta-analytic reviews of board composition,
leadership structure, and financial performance." Strategic Management Journal, 269-290.
Westphal, J.D. & Fredrickson, J.W., 2001. "Who directs strategic change? Director experience, the
selection of new CEOs, and change in corporate strategy." Strategic Management Journal, 1113-1137.
Wowak, A.J. and Hambrick, D.C., Forthcoming. "Do CEOs encounter within-tenure 'settling up'? A
multiperiod perspective on executive pay and dismissal." Academy of Management Journal.
12. Strategy and Organizational Design
Teece, D.J., 1981. "Internal organization and economic performance: An empirical analysis of the
profitability of principle firms." Journal of Industrial Economics, 173-199.
Hoskisson, R.E., 1987. "Multidivisional structure and performance: The contingency of diversification
strategy." Academy of Management Journal, 625-644.
Hill, C.W.L., Hitt, M.A., & Hoskisson, R.A., 1992. "Cooperative versus competitive structures in related
and unrelated diversified firms." Organization Science, 501-521.
Amburgey, T. & Dacin, T., 1994. "As the left foot follows the right? The dynamics of strategic and
structural change." Academy of Management Journal, 1427-1452.
Tsai, W., 2002. "Social structure of 'coopetition' within a multiunit organization: Coordination, competition,
and intra-organizational knowledge sharing." Organization Science, 179-190.
Collis, D., Young, D., & Goold, M., 2007. "The size, structure, and performance of corporate
headquarters." Strategic Management Journal, 383-405.
13. Strategic Processes: Organizational and Human Limits
Bower, J.L., 1970. Managing the Resource Allocation Process. (Chapters 1, 2, and 3). Harvard Business
School.
Mintzberg, H., Raisinghani, D., & Theoret, A., 1976. "The structure of unstructured decision processes."
Administrative Science Quarterly, 246-275.
Eisenhardt, K.M. & Bourgeois, L.J., 1988. "Politics of strategic decision making in high-velocity
environments: Toward a midrange theory." Academy of Management Journal, 737-770.
Burgelman, R.A., 1996. "A process model of strategic business exit: Implications for an evolutionary
perspective on strategy." Strategic Management Journal, 193-214.
Lovas, B. and Ghoshal, S., 2000. "Strategy as guided evolution." Strategic Management Journal, 875896.
Guler, I, 2007. "Throwing good money after bad? Political and institutional influences on sequential
decision making in the venture capital industry." Administrative Science Quarterly, 248-285.
14. Strategic Processes: Goals and Decision-Making
Fredrickson, J.W. & Mitchell, T.R., 1984. "Strategic decision processes: Comprehensiveness and
performance in an industry with an unstable environment." Academy of Management Journal, 399-423.
Schweiger, D.M., Sandberg, W.R., & Ragan, J.W., 1986. "Group approaches for improving strategic
decision making: A comparative analysis of dialectical inquiry, devil's advocacy, and consensus."
Academy of Management Journal, 51-71.
Fredrickson, J.W. & Iaquinto, A.L., 1989. "Inertia and creeping rationality in strategic decision processes."
Academy of Management Journal, 516-542.
Audia, P.G., Locke, E.A., & Smith, K.G., 2000. "The paradox of success: An archival and a laboratory
study of strategic persistence following radical environmental change." Academy of Management Journal,
837-853.
Cho, T.S. & Hambrick, D.C., 2006. "Attention as the mediator between top management team
characteristics and strategic change: The case of airline deregulation." Organization Science, 453-469.
Nadkarni, S. and Barr, P.S., 2008. "Environmental context, managerial cognition, and strategic action: An
integrated view." Strategic Management Journal, 1395-1427.
15. Student Research Presentations