A resourcebased approach to the Booz Allen and Hamilton methodology exploring new directions for practice

Abstract

Two major streams in strategy research are the strategic positioning.approach and the resource-based approach to strategy formulation. However, resources and products can be considered as two sides of the same coin, implying one view is not necessarily superior to the other. In this paper, the well-known Booz Allen and Hamilton methodology for innovation strategy formulation, originally based on a strategic positioning approach to strategy, is revisited with a resource-based approach to strategy. Eight propositions are investigated through case studies conducted in two multinational corporations. It shows that both the established methodology and the revisited methodology are used in multinational corporations today. Case analyses indicate that there are three contingencies that shape the structure of innovation strategy formulation processes level of diversification; characteristics of industry boundaries, customers and competitors and Role and organisation of R&D. In the light of these results new directions for practice and managerial implications are explored. Copyright © 2007 Inderscience Enterprises Ltd.