| The literature on competitive moves is rarely, if ever, linked to the organizational and managerial processes that may drive a firm's ability to move. Consequently, applying knowledge-based theories of organizations, I concentrate on the requisite capabilities for making more moves. Specifically, I focus on product moves and posit that the product portfolio changes (i.e., the degree to which managers change their firm's product offerings) are associated with how organizational knowledge is acquired, integrated, and applied. I hypothesize that firms will exhibit more portfolio change when managers effectively acquire knowledge by exercising future probes (e.g., alliances in new markets, exploratory products, and futurists), when they effectively integrate knowledge through top management team decision-making, and when they effectively apply knowledge within the product development processes. I test these ideas using in-depth, multiple informant field data from 47 strategic business units (SBUs) of major corporations. The research setting is the global electronics industry, a rapidly changing environment where the ability to make more portfolio changes is critical. The dissertation results are that moderate levels of future probing, integrative decision making, external alliances use, and time-paced (not necessarily fast) product innovation are associated with more portfolio changes. The results are especially strong for retiring existing products, competing in high growth markets, and competing in oligopolistic markets. This research suggests that managers in more dynamic markets must actively engage in processes of knowledge acquisition, integration, and application. |
