If the firms are to be mired in the successful practices that have prominently involved them to the spot where they currently are and at this particular point they may avoid searching for new ways in order to exploit resources and the opportunities. Among these few factors that have been specifically identified that are undermining a firmâ€™s success as an unstable leadership and for certain project setbacks as some examples are thereâ€™s one that has received remarkably little scrutiny from the eminent researchers with success itself. As we know, if success is a product of developing which involve deploying of certain resources as well as the routines that can breed better performance in the firms which will further decide that the finest way to repeat success is to replicate those practices again and again.
Staying ahead of everyone in the competition typically involves tapping some new markets, innovating with the flouting traditional modes of thinking and with the aid of all strategies that is by definition, it require breaking free from the status quo. In accordance with the Royal Holloway University of Londonâ€™s Catherine L. Wang and followed by her colleagues in the companies who believe that they can indeed sink into the success traps that can cause harm to their long-term sustainability by overemphasizing Â some of the proven methods rather than exploring new ways to do business. The new study has resulted that such companies shrink away from the current changing market landscape that are stuck in long periods of inertia.
The survey that has been conducted by the authors on directors, CEOs, and senior managers at a rate more than 100 advanced technological companies, which prominently provide an ideal lens through which to examine the problem by avoiding success traps that are of great concern to firms operating in this highly competitive market segment, which can include aerospace, biotechnology as well as the pharmaceuticals alongside computing, media, and medical equipment.
Although there are various ways in which a company can be hindered, and managers can be guilty of one or the several reasons. The authors specifically analyzed three types of corporate behavior that have been prominently linked to increased inertia by stressing the familiar over the unknown alongside preferring the well established over the nascent and by failing to search for the genuinely novel solutions. Followed by the study participants who provided several measures of their firmsâ€™ operations as well as their performance, along with an assessment of how well they deployed different dynamic capabilities.
The authors also focused on whether these high technology firms were ensnared by their advanced technological setups from their constraints, considered an eminent source of competitive advantage for the companies studied. Companies that are rigidly stuck to routines are considered to be the successful routines as it becomes less able to introduce new modes of doing things that are researched by the important authors. Specifically, the companies in success traps had troubled in exploiting external opportunities, by assimilating advanced knowledge, reacting to outside changes, and coming up with innovative ways to adapt to unforeseen events.
The overall effect of these success traps on very short-term financial returns were unclear but due to the dynamic capabilities were clearly linked to firm performance as it was logical to assume that ensnared companies would finally look on their fortunes tumble. Firms in these fast moving sectors were particularly afflicted by few of these success traps as observed by the authors who can demonstrate the importance of thinking of every single step ahead in the markets that can frequently fluctuate.