D'Aveni in a recent book proposes tools and frameworks that meet the new economic realities, and a new 7-S model of strategic management.
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The D'Aveni concepts are applied in this article to the electrotechnical industry, and in particular to the Asea Brown Boveri merger of 1988.
environments and proposes a new 7-S model of strategic management.
To provide a preliminary evaluation of D'Aveni's concept his new tools and frameworks were applied to the electrotechnical industry and the case of the Asea Brown Boveri (ABB) merger in 1988. Furthermore, promising ®elds for further research on the basis of the concept of hypercompetition are suggested.
Approaches of strategy theory
In recent years various scholars have proposed frameworks to explain corporate strategic behaviour and success and to support successful formulation and implementation of corporate strategies. These frameworks draw on theories of the economic and social sciences. In contrast to closed, but highly abstract models, which establish strong links between a highly limited set of variables, frameworks try to stay close to reality and, therefore, take into account a larger number of variables with all their interactions. Furthermore, frameworks assume bounded rationality of actors and allow for effects of organizational contexts. Rigorous functionalistic cause and effects analysis to explain relationships between variables is combined with more interpretive patterns of understanding (Strategic