The market for corporate control may not be as efficient as a governance device as theory suggests because takeover targets are not always low performers with weak governance

Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop

To implement a related linked strategy, a firm usually needs a strategic business unit structure

To successfully implement a firm’s strategy, the workforce must be viewed as a:

Critics advocate reforms to ensure that independent outside directors represent a significant majority of the total membership of the board. But outsider-dominated boards may emphasize the use of financial as opposed to strategic controls. The risk of reliance on financial controls is that they may encourage managers to make decisions to maximize their interests and reduce their employment risk

An innovation developed through autonomous strategic behavior will probably take the firm into new markets not addressed by its current strategy

Corporate governance involves oversight in areas where owners, managers, and members of boards of directors may have conflicts of interest

The simple structure is used by owner-managed firms that are characterized by informal relationships, few rules, limited task specialization, and unsophisticated information systems

While both incremental and novel innovations can create value, incremental innovations have the potential to contribute more significantly to a firm’s efforts to earn above-average returns

If the company’s workers have scant existing knowledge, their “absorptive capacity” to learn new knowledge will be limited