|Ph.D Student||Lev Sara|
|Subject||Managing Strategic Networks in the Digital Era: Theoretical|
Development and an Empirical Examination
of Israeli Hi-Tech Copmpanies
|Department||Department of Industrial Engineering and Management||Supervisor||Mr. Avi Fiegenbaum (Deceased)|
The global competition and the contemporary technological change in the digital era require a fundamental review of business strategy in order to achieve superior performance. Based on the classical strategic management theories, the current study offers three new theoretical perspectives. First, it expands traditional industry structure theories to include those digital aspects that are crucial in the new digital age. Second, it expands the organizational absorptive capacity construct to incorporate a competitive configuration by using the three-dimensional space suggested by the Strategic Reference Point paradigm. The modified construct directs knowledge management in a competitive manner in order to sustain competitive advantages leading to superior performance. Third, it presents the idea that both the relational and structural features of strategic networks can enhance an organization’s absorptive capacity to promote sustainable above-average performance both in the short and long term.
The theoretical model was tested on 141 Israeli Hi Tech companies operating in global markets which were managerially challenged by the Hi Tech crisis of March 2000. The findings were found to support the majority of the research hypotheses and may assist managers of Israeli Hi Tech firms as well as Israel’s economic and technological policy makers by providing directions for solutions facilitating the industry’s emergence from the continuing crisis.