The Entrepreneurial M-Form: Strategic Integration in Global Media Firms

Thomas R. Eisenmann () and Joseph L. Bower ()
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Thomas R. Eisenmann: Harvard Graduate School of Business Administration, Baker West 472, Soldiers Field, Boston, Massachusetts 02163
Joseph L. Bower: Harvard Graduate School of Business Administration, Morgan Hall 467, Soldiers Field, Boston, Massachusetts 02163

Organization Science, 2000, vol. 11, issue 3, 348-355

Abstract: Many researchers believe that bounded rationality prevents CEOs in large, complex, multidivisional (“M-form”) corporations from personally formulating division-level strategies. Instead, CEOs are seen as guiding a “bottom-up” process whereby division managers propose strategies for review and approval by the corporate office. Contrary to this view, we argue that CEOs in global media firms frequently drive strategy in a “top-down” manner, especially when their firms seek to expand by integrating the activities of two or more existing divisions. We refer to such firms as “Entrepreneurial M-forms,” and maintain that their reliance on an activist CEO offers benefits: (1) in turbulent environments, when the use of slow, bottom-up planning processes risks forfeiting first-mover advantages; and (2) when expansion entails major capital commitments, and division managers may be reluctant to accept the career risks associated with sponsorship of “bet-the-company” projects.

Keywords: Strategic Management; M-Form Corporations; Related Diversification; Media and Entertainment Industries (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (17)

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