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Testing the Time‐Variancy of Explanatory Factors of Strategic Change 1
Author(s) -
VicenteLorente José David,
ZúñigaVicente JoséÁngel
Publication year - 2006
Publication title -
british journal of management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.407
H-Index - 108
eISSN - 1467-8551
pISSN - 1045-3172
DOI - 10.1111/j.1467-8551.2005.00483.x
Subject(s) - context (archaeology) , dependency (uml) , empirical research , stability (learning theory) , econometrics , conceptual model , positive economics , empirical evidence , economics , computer science , epistemology , artificial intelligence , paleontology , philosophy , database , machine learning , biology
The article proposes an empirical framework able to: (1) assess the relative validity of both adaptive and inertial views of strategic change and (2) verify the potential time‐ or context‐dependency by testing the structural stability of the empirical model, in Spanish banks, 1983–1997. Results offer inconclusive findings regarding (1) but strong evidence to answer (2). The assumption of structural stability is rejected and the effect of many explanatory factors considered in the empirical model varies over time as some factors show different effects and/or significance levels depending on the period considered. These findings suggest that explanatory models of strategic change should be viewed as ‘time‐’ or ‘context‐dependent’. The article provides a conceptual model in which alternative explanations operate in a sequential way. The results highlight, first, that inconclusive past findings about adaptive versus inertial views should be reviewed under this new evidence, and future empirical research must assure that its methods and interpretations are robust to potential structural breakdowns; and second, the limitations raised by the static approach offered by the available theories/models when approaching the dynamic and complex nature of strategic change. Theoretical developments and implications for managerial practice are suggested.