NOTES

Chapter 1

1. McGrath, R. G., and I. C. MacMillan (2000). The Entrepreneurial Mindset: Strategies for Continuously Creating Opportunity in an Age of Uncertainty. Boston: Harvard Business School Press.

2. Christensen, C. (1997). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Boston: Harvard Business School Press. Christensen, C. M., and M. E. Raynor (2003). The Innovator’s Solution: Creating and Sustaining Successful Growth. Boston: Harvard Business School Press.

3. MacMillan, I. C., and R. G. McGrath (1996). Discover your products’ hidden potential. Harvard Business Review 74 (May–June). MacMillan, I. C., and R. McGrath (1997). Discovering new points of differentiation. Harvard Business Review 75 (July–August): 133–145.

4. McGrath, R. G. (1999). Falling forward: Real options reasoning and entrepreneurial failure. Academy of Management Review 24(1): 13–30.

5. Pietersen, W. (2002). Reinventing Strategy: Using Strategic Learning to Create and Sustain Breakthrough Performance. New York: Wiley.

6. MacMillan, I. C., A. Van Putten, et al. (2003). Global gamesmanship. Harvard Business Review 81(5): 62–71.

7. Baumol, W. J. (2002). The Free-Market Innovation Machine: Analyzing the Growth Miracle of Capitalism. Princeton, NJ: Princeton University Press.

8. Block, Z., and I. C. MacMillan (1993). Corporate Venturing: Creating New Businesses Within the Firm. Boston: Harvard Business School Press. Leifer, R., C. McDermott, et al. (2000). Radical Innovation: How Mature Companies Can Out-smart Upstarts. Boston: Harvard Business School Press.

9. Sitkin, S. B. (1992). Learning through failure: The strategy of small losses. Research in Organizational Behavior 14: 231–266. Farson, R., and R. Keyes (2002). The failure tolerant leader. Harvard Business Review 80(8): 64–71. Matta, N. F., and R. N. Ashkenas (2003). Why good projects fail anyway. Harvard Business Review 81(9): 109–114.

10. Peters, T., and R. Waterman (1982). In Search of Excellence: Lessons from America’s Best-Run Companies. New York: Harper & Row.

11. Miller, D. (1990). The Icarus Paradox: How Exceptional Companies Bring About Their Own Downfall: New Lessons in the Dynamics of Corporate Success, Decline, and Renewal. New York: HarperBusiness.

Chapter 2

1. MacMillan, I. C., and R. G. McGrath (1996). Discover your products’ hidden potential. Harvard Business Review 74.

2. Credit Suisse First Boston (2000). Logistics in the Digital Economy: A Comprehensive Overview of Outsourced Logistics.

3. Anderson, J. C., and J. A. Narus (1998). Business marketing: Understand what customers value. Harvard Business Review 76: 5–15. Wise, R., and P. Baumgartner (1999). Go downstream: The new profit imperative in manufacturing. Harvard Business Review 77(5): 133. Zook, C., and J. Allen (2003). Growth outside the core. Harvard Business Review 81(12): 66.

4. Waters, C. D. (2001). Wireless handhelds help speed table service. Nation's Restaurant News 35(12): 26. Frumkin, P. (2002). Operators say handheld systems provide benefits for wait staff, customers. Nation's Restaurant News 36(46): 36.

5. Weinstein, D. (1997). Start-up success story. U.S. 1 Newspaper, November 19.

Chapter 3

1. MacMillan, I. C., and R. McGrath (1997). Discovering new points of differentiation. Harvard Business Review 75: 133–145.

2. Lowry, T. (2002). The sinkhole of synergy: A review of Bamboozled at the Revolution: How Big Media Lost Billions in the Battle for the Internet, by John Motavalli. Business Week 22.

3. Berner, R. (2002). Why P&G’s smile is so bright. Business Week, 12 August: 58–60.

4. Jackson, B. (2001). In the sport of kings, a bootstrap success. U.S. 1 Newspaper, March 21.

5. Hafner, Katie (2002). Tech gizmos torturing users <http://www.siliconvalley.com/mld/siliconvalley/3188793.htm> (accessed 12 July 2002).

Chapter 4

1. Dixit, A. K., and R. S. Pindyck (1994). Investment Under Uncertainty. Princeton, New Jersey: Princeton University Press.

2. Johnson, J. T. (2004). Distribution online: Dawn of a new era. Network World 21(36): 34.

3. Mullaney, T.J., H. Green, M. Arndt, R. D. Hof, and L. Himelstein (2003). The e-biz surprise. It wasn’t all hype. Business Week, 12 May: 60.

4. McGrath, R. G., and I. C. MacMillan (2000). The Entrepreneurial Mindset: Strategies for Continuously Creating Opportunity in an Age of Uncertainty. Boston: Harvard Business School Press.

5. Mullaney et al. The e-biz surprise.

6. Hutton, A. (2001). Four rules for taking your message to Wall Street. Harvard Business Review (May): 5–11.

7. Kaplan, S. (2001). Concrete ideas. CIO Magazine, 15 August.

8. In uncertain markets it is sometimes difficult to determine which firms constitute your industry. In this case, try to identify the companies you consider your most serious competitors.

9. If you have no hard data but can make reasonable estimates, use these. Otherwise, too bad—life is never simple.

10. Business Wire. (2002). Fitch upgrades Cemex to “BBB” from “BBB–”: Outlook Stable.

11. Microsoft Corporation (2001). Lamons Gasket Company—Industrial supplier deploys B2B E-commerce solution in 90 days using Microsoft supplier enablement solution <http://www.microsoft.com/resources/casestudies/casestudy.asp?casestudyid=11766&PF=yes> (accessed September 26, 2004).

12. Ibid.

13. <http://www.federalreserve.gov/releases/h15/data/m/tcm10y.txt> (accessed September 2004).

14. EBITDA stands for earnings before interest and taxes plus depreciation and amortization.

15. <http://arstechnica.com/news/posts/20040630-3951.html> (accessed September 2004).

Chapter 5

1. Ghemawat, P. (1984). Capacity expansion in the titanium dioxide industry. Journal of Industrial Economics 33: 145–163.

2. Kogut, B., and N. Kulatilaka (1994). Operating flexibility, global manufacturing, and the option value of a multinational network. Management Science 40(1): 123–139.

3. Sanchez, R., and J. T. Mahoney (1996). Modularity, flexibility, and knowledge management in product and organizational design. Strategic Management Journal 17: 63–76. Baldwin, C., and K. B. Clark (2000). Design Rules: The Power of Modularity. Cambridge, MA: MIT Press.

4. Suarez, F. F., and J. M. Utterback (1995). Dominant designs and the survival of firms. Strategic Management Journal 16: 415–430.

5. Utterback, J. M., and W. J. Abernathy (1975). A dynamic model of process and product innovation. Omega 3(6): 639–656. Aldrich, H. E., and C. M. Fiol (1994). Fools rush in? The institutional context of industry creation. Academy of Management Review 19(4): 645–670. Aldrich, H. (1999). Organizations Evolving. Thousand Oaks, CA: Sage Publications. Moore, G. A. (2000). Living on the Fault Line: Managing for Shareholder Value in the Age of the Internet. New York: Harper Business.

6. Tushman, M., and P. Anderson (1986). Technological discontinuities and organizational environments. Administrative Science Quarterly 31: 439–465. Harrigan, K. R. (1990). Will you be “the last iceman”? Sales & Marketing Management (January): 62–67. Cooper, A. C., and C. G. Smith (1992). How established firms respond to threatening technologies. Academy of Management Executive 6(2): 55–70.

7. Porter, M. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: The Free Press.

8. Sahlman, W. A., and H. Stevenson (1985). Capital market myopia. Journal of Business Venturing 1: 7–30.

9. Kulatilaka, N., and L. Trigeorgis (1994). The general flexibility to switch: Real options revisited. International Journal of Finance 6(2): 778–798.

10. Lorenzoni, G., and O. Ornati (1988). Constellations of firms and new ventures. Journal of Business Venturing 3: 41–57.

11. Port, O., I. M. Kunii, B. Einhorn, and A. Park (2002). Chips on monster wafers: How the shift to larger wafers and thin circuits will transform the industry. Business Week, 11 November: 50–53.

12. Maloney, D. (2001). Pioneer-standard blazes a new trail. Modern Materials Handling 56(4): 73–77.

13. BusinessWeek Online (2003). Hot growth 2003 scoreboard <http://bwnt. businessweek.com/hot_growth/2003/index.asp>.

14. Goodman, M. (2000). U.S. and the Americas Investment Perspectives. Morgan Stanley Analyst Report, 2 August, and personal correspondence, M. Goodman, 1 October 2004.

15. Harrigan, K. R. (1980). Strategies for Declining Businesses. Lexington, MA: Lexington Books.

16. Quinn, R. E., and K. Cameron (1983). Organizational life cycles and shifting criteria of effectiveness: Some preliminary evidence. Management Science 29(1): 33–50.

17. Proctor, T. (2001). Corporate restructuring: The pitfalls of changing industry structure. Management Decision 39(3): 197–204.

18. Moore, Living on the Fault Line.

19. Dorsch, Jeff. (1999) Hitachi joins the crowd. Electronic News, 7 June. DPI readies Singapore mask shop (1999). Electronic News, 1 November. Du Pont Photomask press release (1996). <www.photomask.com>, 5 January.

20. Christensen, C. (1997). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Boston, MA; Harvard Business School Press.

21. Mosquera, M. (2001). Bayer taps SAP to speed distribution: Drug maker leans on ERP system to meet spikes in demand following the anthrax scare. InternetWeek, 10 December: 31–32.

22. MBNA Corporation (2002). Hoovers Online <http://premium.hoovers.com/ subscribe/co/factsheet.xhtml?COID=12449>.

23. Fisher, D. (1998). Sweet consolation. Forbes 162(6). Kinder Morgan Energy Partners (2002). About us. <www.kindermorgan.com/about_us/>. Taylor, G. (2002). Kinder Morgan Plans $43 Million Expansion. Chemical Market Reporter, 11 January. Womack, Anita (1998). Where can affinity programs take you? Bank Marketing.

Chapter 6

1. Tushman, M., and P. Anderson (1986). Technological discontinuities and organizational environments. Administrative Science Quarterly 31: 439–465. Henderson, R. M., and K. B. Clark (1990). Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms. Administrative Science Quarterly 35: 9–30.

2. Block, Z., and I. C. MacMillan (1993). Corporate Venturing: Creating New Businesses Within the Firm. Boston: Harvard Business School Press. Christensen, C. M., and M. E. Raynor (2003). The Innovator’s Solution: Creating and Sustaining Successful Growth. Boston: Harvard Business School Press.

3. Cyert, R. M., and J. G. March (1963). A Behavioral Theory of the Firm. Englewood Cliffs, NJ,: Prentice-Hall.

4. Van de Ven, A., H. Angle, and M. S. Poole (1989). Research on the Management of Innovation: The Minnesota Studies. New York: Harper & Row Ballinger Division. Schoemaker, P., and C. A. J. M. v. d. Heijden (1992). Integrating scenarios into strategic planning at Royal Dutch/Shell. Planning Review, May/June: 41–46. Heijden, K. A. v. d., and NetLibrary Inc. (2002). The Sixth Sense: Accelerating Organisational Learning with Scenarios. Chichester, U.K.: Wiley. Lynn, G., J. G. Morone, and A. S. Paulson (1996). Marketing and discontinuous innovation: the probe and learn process. California Management Review 38(3): 8–37. Leifer, R., C. McDermott, et al. (2000). Radical Innovation: How Mature Companies Can Out-smart Upstarts. Boston: Harvard Business School Press.

5. Schoonhoven, C. B., and R. Romanelli (2001). The Entrepreneurship Dynamic: Origins of Entrepreneurship and the Evolution of Industries. Stanford, CA: Stanford University Press. Keil, T. (2002). External Corporate Venturing: Strategic Renewal in Rapidly Changing Industries. Westport, CT: Quorum Books.

6. Jim Carnes, on being, and remaining, a high-tech state (2001). Business News New Jersey, 23 October: 13.

7. Dougherty, D. (1990). Understanding new markets for new products. Strategic Management Journal 11: 59–78.

8. Dos Santos, B. L., and K. Peffers (1995). Rewards to investors in innovative information technology applications: First movers and early followers in ATMs. Organization Science 6(3): 241–259.

9. Christensen, C. (1997). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Boston, MA: Harvard Business School Press Christensen and Raynor, The Innovator’s Solution.

10. This discussion assumes relatively free markets, with firms motivated to innovate in order to gain from proprietary access to the solution that emerges.

11. Walras, L. 1984. Elements of Pure Economics or the Theory of Social Wealth (W. Jaffe, Trans.). Philadelphia, PA: Orion Editions.

12. Longman, P. (2004). The Empty Cradle: How Falling Birthrates Threaten World Prosperity and What to Do about It. New York: Basic Books.

13. For this kind of analysis see Schoemaker, P. S., and R. Gunther (2002). Profiting from Uncertainty: Strategies for Succeeding No Matter What the Future Brings. New York: The Free Press.

14. Anderson, P., and M. L. Tushman (1990). Technological discontinuities and dominant designs: A cyclical model of technological change. Administrative Science Quarterly 35: 604–633.

15. Centers for Disease Control (2002). BMI: Body Mass Index <http://www.cdc.gov/nccdphp/dnpa/bmi/>

16. Hoovers Online (2002). Doctors Associates <http://premium.hoovers. com/subscribe/co/factsheet.xhtml?COID=40450> (accessed July 12, 2002).

17. Huget, Jennifer L. (2002). Healthy fast foods—for adults. The Washington Post, 14 May, HE01.

18. Bowman, E. H., and D. Hurry (1993). Strategy through the option lens: An integrated view of resource investments and the incremental-choice process. Academy of Management Review 18(4): 760–782. MacMillan, I. C., and R. G. Mc-Grath (2002). Crafting R&D project portfolios. Research-Technology Management 45(5): 48–59.

19. Fifties Web Index (2002). Swanson TV dinners <www.fiftiesweb.com/pop/tv-dinner.htm>.

20. Kleinman, Mark (2001). Nicorette in “quit smoking” DM. Marketing.

21. Nicorette (2002). <www.nicorette.com>.

22. Ibid.

23. Rock, Andrea (1999). Quitting time for smokers. Money 28(1).

24. “Nicorette poised to rework brand identity globally” (2001). Marketing.

25. Woo, C. Y., and A. C. Cooper (1981). Strategies of effective low share businesses. Strategic Management Journal 2: 301–318.

26. Block, Z., and I. C. MacMillan (1993). Corporate Venturing: Creating New Businesses Within the Firm. Boston: Harvard Business School Press. Leifer et al., Radical Innovation. McGrath, R. G., and I. C. MacMillan (2000). The Entrepreneurial Mindset: Strategies for Continuously Creating Opportunity in an Age of Uncertainty. Boston: Harvard Business School Press.

Chapter 7

1. Bossidy, L., and R. Charan (2002). Execution: The Discipline of Getting Things Done. New York: Crown Business.

2. Galbraith, J. (1973). Designing Complex Organizations. Reading, MA,: Addison-Wesley. Nohria, N., W. Joyce, and B. Roberson (2003). What really works. Harvard Business Review 81(7): 42–52.

3. Dutton, J. E., S. J. Ashford, K. A. Lawrence, and K. Miner-Rubino (2002). Red light, green light: Making sense of the organizational context for issue selling. Organization Science 13(4): 355. Dutton, J. E., and S. E. Jackson (1987). Categorizing strategic issues: Links to organizational action. Academy of Management Review 12(1): 76.

4. Miller, G. A. (1956). The magical number seven, plus or minus two: Some limits on our capacity for processing information. Psychological Review 63: 81–97.

5. Collins, J. (2001). Level 5 leadership: The triumph of humility and fierce resolve. Harvard Business Review, January, 67–76.

6. O’Reilly, C. (1989). Corporations, culture, and commitment: Motivation and social control in organizations. California Management Review, summer, 9–25. Saxenian, A. (1994). Regional Advantage: Culture and Competition in Silicon Valley and Route 128. Cambridge, MA.: Harvard University Press. Goffee, R., and G. Jones (1998). The Character of a Corporation: How Your Company’s Culture Can Make or Break Your Business. New York: HarperBusiness.

7. Sitkin, S. B. (1992). Learning through failure: The strategy of small losses. Research in Organizational Behavior 14: 231–266. McGrath, R. G. (1999). Falling forward: Real options reasoning and entrepreneurial failure. Academy of Management Review 24(1): 13–30. Farson, R., and R. Keyes (2002). The failure tolerant leader. Harvard Business Review 80(8): 64–71. Matta, N. F., and R. N. Ashkenas (2003). Why good projects fail anyway. Harvard Business Review 81(9): 109–114.

8. Kahneman, D., P. Slovic, and A. Tversky (1982). Judgment under Uncertainty: Heuristics and Biases. Cambridge, U.K.; New York: Cambridge University Press.

9. Coser, L. (1959). The Functions of Social Conflict. Glencoe, IL,: Free Press. Janis, I. L. (1972). Victims of Groupthink; a Psychological Study of Foreign-Policy Decisions and Fiascoes. Boston: Houghton Mifflin. Harvey, J. B. (1974). The Abilene paradox: The management of agreement. Organizational Dynamics, Summer. McGrath, R. G., and I. C. MacMillan (1995). Discovery-driven planning. Harvard Business Review 73(4): 44–54. Amason, A. C. (1996). Distinguishing the effects of functional and dysfunctional conflict on strategic decision-making: Resolving a paradox for top management teams. Academy of Management Journal 39: 123–148.

10. Charan, R. (2001). Conquering a culture of indecision. Harvard Business Review 79(4): 74.

11. Kaplan, R. S., and D. P. Norton (1992). The balanced scorecard: Measures that drive performance. Harvard Business Review 70: 71–79.

12. Conger, J. A. (1998). The necessary art of persuasion. Harvard Business Review 76(3): 84.

13. Pottruck, D. S., and T. Pearce (2000). Clicks and Mortar: Passion Driven Growth in an Internet Driven World. San Francisco: Jossey Bass.

14. Beer, M., and N. Nohria (2000). Breaking the Code of Change. Boston: Harvard Business School Press.

15. Kerr, J., and J. W. Slocum (1987). Managing corporate culture through reward systems. Academy of Management Executive 1(2): 99–108. Kerr, S. (1997). Ultimate Rewards: What Really Motivates People to Achieve. Boston: Harvard Business School Press.

16. Bower, J. L. (1970). Managing the resource allocation process: A study of corporate planning and investment. Boston: Division of Research, Graduate School of Business Administration, Harvard University.

17. Pietersen, W. (2002). Reinventing Strategy: Using Strategic Learning to Create and Sustain Breakthrough Performance. New York: Wiley.

18. Hope, J., and R. Fraser (2003). Beyond Budgeting: How Managers Can Break Free from the Annual Performance Trap. Boston: Harvard Business School Press. Hope, J., and R. Fraser (2003). Who needs budgets? Harvard Business Review 81(2): 108-115.

19. Ibid.

20. Feldman, M. S., and J. G. March (1981). Information in organizations as signal and symbol. Administrative Science Quarterly 26: 171–186.

21. McGrath and MacMillan, Discovery-driven planning.

Chapter 8

1. McGrath, R. G., and I. C. MacMillan (1995). Discovery-driven planning. Harvard Business Review 73(4): 44–54.

2. MacMillan, I. C., and R. G. McGrath (2002). Crafting R&D project portfolios. Research-Technology Management 45(5): 48–59.