Abstract
Entrepreneurs work in highly uncertain conditions, depend on limited resources, and try to make sense of the market complexity with their limited information on the contextual environment. In the process, they set revenue generating and profit-making goals, acquire and develop needed resources, build capabilities and skills, and analyze competitors, their products and their market approach to secure competitive advantage. However, most entrepreneurs take actions, make decisions and commitments, and allocate resources without doing sufficient analysis of the competing choices that they have. With a better understanding of what strategy frameworks and tools are available out there, how strategies work, how these tools and systems can help design their business activities, create value, and compete in the marketplace, they can take necessary actions toward achieving their objectives. Whether the entrepreneurs’ objective is to create wealth or to tackle a social challenge, they should adopt strategy tools to maximize their chances of achieving set goals. Here, we delineated some of the strategic means that are essential for the development of an enterprise and attain market competitiveness. Knowledge-based entrepreneurship needs to have a different approach to the designing of business models as businesses in these sectors rely heavily on emerging technologies and in-depth technological and scientific knowledge. In this chapter, we provided a detailed view of knowledge-based social entrepreneurship, possible strategic approaches available to aspiring entrepreneurs, various widely used business models, and emerging concepts in the development of business models for knowledge-based social entrepreneurship.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Abell, D. F. (1980). Defining the business: The starting point of strategic planning (pp. 3–26). Englewood Cliffs, NJ: Prentice-Hall.
Abraham, S. C. (Ed.). (2012). Strategic planning: A practical guide for competitive success. Bingley: Emerald Group Publishing.
Amit, R. (1986). Cost leadership strategy and experience curves. Strategic Management Journal, 7(3), 281–292.
Aukstakalnis, S. (2016). Practical augmented reality: A guide to the technologies, applications, and human factors for AR and VR. Boston: Addison-Wesley Professional.
Autio, E., & Acs, Z. (2010). Intellectual property protection and the formation of entrepreneurial growth aspirations. Strategic Entrepreneurship Journal, 4(3), 234–251.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Barney, J. B. (1997). Gaining and sustaining competitive advantage. London: Pearson Education.
Bowman, C. (1998). Strategy in practice (p. 201). Upper Saddle River, NJ: Prentice Hall Europe.
Bracker, J. S., Keats, B. W., & Pearson, J. N. (1988). Planning and financial performance among small firms in a growth industry. Strategic Management Journal, 9(6), 591–603.
Brouard, F., & Larivet, S. (2010). Essay of clarifications and definitions of the related concepts of social enterprise, social entrepreneur and social entrepreneurship. In Handbook of research on social entrepreneurship (pp. 29–56). Cheltenham: Edward Elgar.
Chandler, A. D. (1962). Strategy and structure: Chapters in the history of the American enterprise. Massachusetts Institute of Technology Cambridge, 4(2), 125–137.
Chesbrough, H. (2010). Business model innovation: Opportunities and barriers. Long Range Planning, 43(2–3), 354–363.
Chittipeddi, K., & Wallett, T. A. (1991). Entrepreneurship and competitive strategy for the 1990s. Journal of Small Business Management, 29(1), 94.
Clarke, R. (1994). The digital persona and its application to data surveillance. The Information Society, 10(2), 77–92.
Dell, M., & Fredman, C. (2002). Direct from Dell: Strategies that revolutionized an industry. Newbury Park, CA: Sage.
Dess, G. G., & Davis, P. S. (1984). Porter’s (1980) generic strategies as determinants of strategic group membership and organizational performance. Academy of Management Journal, 27(3), 467–488.
Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23(4), 660–679.
Eggers, J. H., Leahy, K. T., & Churchill, N. C. (1994). Stages of small business growth revisited (insights into growth path and leadership/management skills in low- and high-growth companies). In W. D. Bygrave, et al. (Eds.), Frontiers of entrepreneurship research 1994 (pp. 131–144). Babson Park: Babson College.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10–11), 1105–1121.
Fernald, L. W., Solomon, G. T., & Tarabishy, A. (2005). A new paradigm: Entrepreneurial leadership. Southern Business Review, 30(2), 1–10.
Fan, H., & Poole, M. S. (2006). What is personalization? Perspectives on the design and implementation of personalization in information systems. Journal of Organizational Computing and Electronic Commerce, 16(3–4), 179–202.
Garrett, J. J. (2010). Elements of user experience: User-centered design for the web and beyond. London: Pearson Education.
Granstrand, O. (1999). The economics and management of intellectual property. London: Books.
Grant, R. M. (1991). The resource-based theory of competitive advantage: Implications for strategy formulation. California Management Review, 33(3), 114–135.
Grassl, W. (2012). Business models of social enterprise: A design approach to hybridity. ACRN Journal of Entrepreneurship Perspectives, 1(1), 37–60.
Griggs, D., Stafford-Smith, M., Gaffney, O., Rockström, J., Öhman, M. C., Shyamsundar, P., et al. (2013). Policy: Sustainable development goals for people and planet. Nature, 495(7441), 305.
Hamari, J., Sjöklint, M., & Ukkonen, A. (2016). The sharing economy: Why people participate in collaborative consumption. Journal of the Association for Information Science and Technology, 67(9), 2047–2059.
Hamel, G., & Heene, A. (1994). Competence-based competition. Chichester and New York: Wiley.
Hamel, G., & Prahalad, C. K. (1990). Strategic intent. Harvard Business Review, 67(3), 63–76.
Hrebiniak, L. G. (2005). Making strategy work: Leading effective execution and change. USA: Wharton school publication in association with Pearson education.
Jackson, S. E., Joshi, A., & Erhardt, N. L. (2003). Recent research on team and organizational diversity: SWOT analysis and implications. Journal of Management, 29(6), 801–830.
Javidan, M. (1998). Core competence: What does it mean in practice? Long Range Planning, 31(1), 60–71.
Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008, December). Reinvesting your business model, w HBR’s must-reads on strategy. Harvard Business Review.
Kaplan, R. S., & Norton, D. P. (2004). Measuring the strategic readiness of intangible assets. Harvard Business Review, 82(2), 52–63.
Kellermanns, F., Walter, J., Crook, T. R., Kemmerer, B., & Narayanan, V. (2016). The resource-based view in entrepreneurship: A content-analytical comparison of researchers’ and entrepreneurs’ views. Journal of Small Business Management, 54(1), 26–48.
Kim, W. C., & Mauborgne, R. (2004). Blue ocean strategy: If you read nothing else on strategy, read these best-selling articles, p. 71.
Kirkpatick, S. A., & Locke, E. A. (1991). Leadership: Do traits matter? Academy of Management Perspectives, 5(2), 48–60.
Kohn, A. (1986). No contest: The case against competition. Boston: Houghton Mifflin.
Krutko, V. N., Bolshakov, A. M., Dontsov, V. I., Mamikonova, O. A., Markova, A. M., Molodchenkov, A. I., et al. (2017, August). Intelligent internet technology for personalized health-saving support. In International Conference of Artificial Intelligence, Medical Engineering, Education (pp. 157–165). Cham: Springer.
Leavitt, N. (2007). The changing world of outsourcing. Computer, 12, 13–16.
Leonard-Barton, D. (1992). Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal, 13(S1), 111–125.
Li, Y., Guohui, S., & Eppler, M. J. (2008). Making strategy work: A literature review on the factors influencing strategy implementation. In P. Mazzola & F. W. Kellermanns (Eds.), Handbook of research on strategy process (pp. 165–183). Cheltenham: Edward Elgar.
Lindgardt, Z., Reeves, M., Stalk, G., & Deimler, M. S. (2009). Business model innovation: When the game gets tough, change the game. Boston, MA: The Boston Consulting Group.
Lucas, H. C., Jr., & Goh, J. M. (2009). Disruptive technology: How Kodak missed the digital photography revolution. The Journal of Strategic Information Systems, 18(1), 46–55.
Magretta, J. (2002). Why business models matter. Brighton: Harvard Business School Press.
Matofska, B. (2014). What is the sharing economy. The people who share, 444.
McKenna, S. D. (1996). The darker side of the entrepreneur. Leadership & Organization Development Journal, 17(6), 41–45.
Mintzberg, H. (1994). The rise and fall of strategic planning. Harlow: Pearson Education.
Mintzberg, H. (2000). The rise and fall of strategic planning. Harlow: Pearson Education.
Mintzberg, H., & Waters, J. A. (1985). Of strategies, deliberate and emergent. Strategic Management Journal, 6(3), 257–272.
Ojala, A., & Tyrväinen, P. (2006). Business models and market entry mode choice of small software firms. Journal of International Entrepreneurship, 4(2–3), 69–81.
Pearce, J. A., Robinson, R. B., & Subramanian, R. (2000). Strategic management: Formulation, implementation, and control. Columbus, OH: Irwin/McGraw-Hill.
Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14(3), 179–191.
Peterson, G. D., Cumming, G. S., & Carpenter, S. R. (2003). Scenario planning: A tool for conservation in an uncertain world. Conservation Biology, 17(2), 358–366.
Porter, M. E. (1979). How competitive forces shape strategy. Strategic Planning: Readings, 102–117.
Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance (pp. 43, 214). New York: Free Press.
Porter, M. E. (1989). How competitive forces shape strategy. In Readings in strategic management (pp. 133–143). London: Palgrave.
Porter, M. E. (1990). The competitive advantage of nations. London: Macmillan.
Prahalad, C. K. (2004). The blinders of dominant logic. Long Range Planning, 37(2), 171–179.
Prahalad, C. K., & Hamel, G. (2006). The core competence of the corporation. In Strategischeunternehmungsplanung—strategischeunternehmungsführung (pp. 275–292). Berlin and Heidelberg: Springer.
Priem, R. L., & Butler, J. E. (2001). Is the resource-based “view” a useful perspective for strategic management research? Academy of Management Review, 26(1), 22–40.
Ravald, A., & Grönroos, C. (1996). The value concept and relationship marketing. European Journal of Marketing, 30(2), 19–30.
Ricci, F., Rokach, L., & Shapira, B. (2015). Recommender systems: Introduction and challenges. In Recommender systems handbook (pp. 1–34). Boston, MA: Springer.
Richardson, J. (2008). The business model: An integrative framework for strategy execution. Strategic Change, 17(5–6), 133–144.
Rodden, K., Hutchinson, H., & Fu, X. (2010, April). Measuring the user experience on a large scale: User-centered metrics for web applications. In Proceedings of the SIGCHI Conference on Human Factors in Computing Systems (pp. 2395–2398). ACM.
Runge, W. (2014). Case Study Zynga Inc. http://etm.entechnon.kit.edu/downloads/Zynga_Inc.pdf​.
Savage, N., & Diallo, M. S. (2005). Nanomaterials and water purification: opportunities and challenges. Journal of Nanoparticle Research, 7(4–5), 331–342.
Scott, M., & Bruce, R. (1987). Five stages of growth in small business. Long Range Planning, 20(3), 45–52.
Segal-Horn, S., Asch, D., & Suneja, V. (1998). The globalization of the European white goods industry. European Management Journal, 16(1), 101–109.
Shafer, S. M., Smith, H. J., & Linder, J. C. (2005). The power of business models. Business Horizons, 48(3), 199–207.
Shoemaker, P. J. H. (1995). Scenario planning: A tool for strategic thinking. Sloan Management Review, 37(2), 25–40.
Shukla, S., & Bairiganjan, S. (2011). The base of pyramid distribution challenge. Chennai: Centre for Development Finance.
Sirmon, D. G., Hitt, M. A., & Ireland, R. D. (2007). Managing firm resources in dynamic environments to create value: Looking inside the black box. Academy of Management Review, 32(1), 273–292.
Smith, W. R. (1956). Product differentiation and market segmentation as alternative marketing strategies. Journal of Marketing, 21(1), 3–8.
Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2–3), 172–194.
Tikkanen, H., Lamberg, J. A., Parvinen, P., & Kallunki, J. P. (2005). Managerial cognition, action and the business model of the firm. Management Decision, 43(6), 789–809.
Timmers, P. (1998). Business models for electronic markets. Electronic Markets, 8(2), 3–8.
Verweire, K. (2014). Strategy implementation. Abingdon: Routledge.
Vesper, K. H. (1990). New venture strategies. Englewood Cliffs, NJ: Prentice-Hall.
Wang, C. L., Zhang, Y., Ye, L. R., & Nguyen, D. D. (2005). Subscription to fee-based online services: What makes consumer pay for online content? Journal of Electronic Commerce Research, 6(4), 304.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.
Whittington, R. (1993). What is strategy and does it matter?. London: Routledge.
Yadav, A., Marcolino, L. S., Rice, E., Petering, R., Winetrobe, H., Rhoades, H., et al. (2015, January). Preventing HIV spread in homeless populations using PSINET. In AAAI (pp. 4006–4011).
Zott, C., & Amit, R. (2007). Business model design and the performance of entrepreneurial firms. Organization Science, 18(2), 181–199.
Author information
Authors and Affiliations
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Kabir, M.N. (2019). Strategy, Strategy Formulation, and Business Models. In: Knowledge-Based Social Entrepreneurship. Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-34809-8_8
Download citation
DOI: https://doi.org/10.1057/978-1-137-34809-8_8
Published:
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-137-35406-8
Online ISBN: 978-1-137-34809-8
eBook Packages: Business and ManagementBusiness and Management (R0)