טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentSharon Tal-Itzkovitch
SubjectOrganizations Strategic Reference Points & The Role of the
Competitive Context: Israeli High Tech Companies
before and after March 2000 Stock Market
Crash
DepartmentDepartment of Industrial Engineering and Management
Supervisors Mr. Fiegenbaum Avi (Deceased)
Full Professor Feigin Paul


Abstract

Theories of organizations' strategy and strategic management are based on the role of a reference point in affecting organizational strategic behavior.  The current study focuses on how reference points are determined within organizations, rather than their influence. 

First, we address the role of the competitive context. Namely, does the context of a higher degree of competition, such as after the March 2000 stock market crash, affect organizations’ choice of strategic reference points (SRPs)? Second, we address the characteristics of an SRP in terms of the organization’s referential perspectives (what to compare) and referential comparisons (against whom to compare).  Third, we address the scope: single versus multiple SRPs used by organizations simultaneously.  Finally, performance wise, we address the issue of whether the SRPs used have an impact on organizations' performance. 

  A major finding of the current study is the contingency nature of the competitive context, in affecting organizations’ choice of SRPs. In regard to their characteristics, we found that organizations use both input and output referential perspectives, and both self and competitors referential comparisons, with wider use after the crash.  In regard to scope, the findings reveal that a wider range of SRPs are used simultaneously during high competition. Finally, we found almost no impact of the SRP on organizations’ performance. Therefore, we suggest that future research should extend its theoretical foundation to include their interaction with organizations’ dynamic capabilities in order to explore the challenging question of managing sustainable above average performance.