Strategy

- 2025
- Working Paper
Crossing the Design-Use Divide: How Process Manipulation Shapes the Design and Use of AI

By: Rebecca Karp

Existing literature often separates research on the design of innovations from their implementation and use, neglecting the role of selection—how organizations choose which innovations to implement. Although scholars suggest scientific approaches for selecting novel technologies, there is limited research on how these methods are practically employed in decision-making. This study addresses this gap by examining how organizations decide which innovations to implement and how the selection process influences their design and use. Drawing on a two-year ethnographic study, the research explores how 13 dyadic pairs of entrepreneurial firms and health system committees piloted AI-based medical diagnostic innovations. Committees, composed of members with polarized views on AI, formed coalitions reflecting these views. Dominant coalitions engaged in "process manipulation," strategically altering the piloting process to achieve self-interested outcomes while maintaining an appearance of rigor. Coalitions enthusiastic about AI scoped pilots to test basic uses, ensuring success, while skeptical committees tested advanced uses, hoping for failure. This manipulation constrained entrepreneurs' ability to advocate for their innovations and demonstrate market differentiation. The paper highlights the dynamics of process manipulation and its impact on AI innovation development and use.
- 2025
- Working Paper
Crossing the Design-Use Divide: How Process Manipulation Shapes the Design and Use of AI

By: Rebecca Karp

Existing literature often separates research on the design of innovations from their implementation and use, neglecting the role of selection—how organizations choose which innovations to implement. Although scholars suggest scientific approaches for selecting novel technologies, there is limited research on how these methods are practically...
- January 2025
- Case
Transforming Talent at Teach For Taiwan

By: Juan Alcácer and Chi Kuan
- January 2025
- Case
Transforming Talent at Teach For Taiwan

By: Juan Alcácer and Chi Kuan
- 2025
- Working Paper
CEO-Firm Matches and Productivity in 42 Countries

By: Amanda Dahlstrand, Dávid László, Helena Schweiger, Oriana Bandiera, Andrea Prat and Raffaella Sadun

Firms are key to economic development, and CEOs are key to firm productivity. Are firms in countries at varying stages of development led by the right CEOs, and if not, why? We develop a parsimonious measure of CEO time use that allows us to differentiate CEOs into “leaders” and “managers” in a survey of 4,800 manufacturing firms across 42 countries, with income per capita ranging from USD 4,000 to 45,000. We find that poorer countries have fewer leaders and relate this to training opportunities. Even when suitable leaders are available, they often do not lead the firms that would benefit the most, resulting in mismatches that can cause up to a 20% loss in productivity for the mismatched firms. The findings imply that policies that address the causes of mismatch could significantly enhance growth without additional resources.
- 2025
- Working Paper
CEO-Firm Matches and Productivity in 42 Countries

By: Amanda Dahlstrand, Dávid László, Helena Schweiger, Oriana Bandiera, Andrea Prat and Raffaella Sadun

Firms are key to economic development, and CEOs are key to firm productivity. Are firms in countries at varying stages of development led by the right CEOs, and if not, why? We develop a parsimonious measure of CEO time use that allows us to differentiate CEOs into “leaders” and “managers” in a survey of 4,800 manufacturing firms across 42...

About the Unit

The Strategy unit studies firms as competitors in an economic landscape. Key issues include: the development and effectiveness of firm strategy at both a business and corporate level; the analysis of the competitive environment; and the sustainability of strategy over time.

Our research, course development, and teaching draws on multiple disciplines, including economics, sociology, and political science, and focuses on both domestic and global competition. The objective of the work is to generate findings and develop concepts that will help managers improve their strategic decisions while advancing the state of knowledge in the academic study of strategy and related disciplines.

Recent Publications

Crossing the Design-Use Divide: How Process Manipulation Shapes the Design and Use of AI

By: Rebecca Karp

2025 |
Working Paper |
Faculty Research

Existing literature often separates research on the design of innovations from their implementation and use, neglecting the role of selection—how organizations choose which innovations to implement. Although scholars suggest scientific approaches for selecting novel technologies, there is limited research on how these methods are practically employed in decision-making. This study addresses this gap by examining how organizations decide which innovations to implement and how the selection process influences their design and use. Drawing on a two-year ethnographic study, the research explores how 13 dyadic pairs of entrepreneurial firms and health system committees piloted AI-based medical diagnostic innovations. Committees, composed of members with polarized views on AI, formed coalitions reflecting these views. Dominant coalitions engaged in "process manipulation," strategically altering the piloting process to achieve self-interested outcomes while maintaining an appearance of rigor. Coalitions enthusiastic about AI scoped pilots to test basic uses, ensuring success, while skeptical committees tested advanced uses, hoping for failure. This manipulation constrained entrepreneurs' ability to advocate for their innovations and demonstrate market differentiation. The paper highlights the dynamics of process manipulation and its impact on AI innovation development and use.

Citation

Read Now

Olive Young: Formulating Beauty Innovation

By: Rebecca Karp and Shu Lin

January 2025 |
Case |
Faculty Research

Sun-jung Lee, CEO of Olive Young, South Korea's largest beauty and health retailer, saw significant potential in the U.S. market and considered three pathways: replicating Korea's omnichannel model, adopting a digital-native approach with curated products, or relying on the cost-effective but limited global online mall. She also pondered whether Olive Young’s local trend-driven merchandising model could succeed in the diverse U.S. market.

Keywords: Retail Industry; Beauty and Cosmetics Industry; South Korea; East Asia

Citation

Educators

Transforming Talent at Teach For Taiwan

By: Juan Alcácer and Chi Kuan

January 2025 |
Case |
Faculty Research

Keywords: Education; Teaching; Education Industry; Taiwan

Citation

Educators

Purchase

CEO-Firm Matches and Productivity in 42 Countries

By: Amanda Dahlstrand, Dávid László, Helena Schweiger, Oriana Bandiera, Andrea Prat and Raffaella Sadun

2025 |
Working Paper |
Faculty Research

Firms are key to economic development, and CEOs are key to firm productivity. Are firms in countries at varying stages of development led by the right CEOs, and if not, why? We develop a parsimonious measure of CEO time use that allows us to differentiate CEOs into “leaders” and “managers” in a survey of 4,800 manufacturing firms across 42 countries, with income per capita ranging from USD 4,000 to 45,000. We find that poorer countries have fewer leaders and relate this to training opportunities. Even when suitable leaders are available, they often do not lead the firms that would benefit the most, resulting in mismatches that can cause up to a 20% loss in productivity for the mismatched firms. The findings imply that policies that address the causes of mismatch could significantly enhance growth without additional resources.

Keywords: Training; Management Skills; Economic Growth; Leadership Development

Citation

Read Now

Less Is More: Will Aldi's Expansion Plans Pay Off in a Crowded U.S. Grocery Market?

By: David Collis and Haisley Wert

January 2025 |
Case |
Faculty Research

In 2024, the discount grocery retailer Aldi announced bold U.S. expansion plans. Within five years, the German company would increase its store count by 30% to reach 3,200+ stores across the United States and approach becoming the fifth largest grocery retailer in the country. Aldi had pioneered a unique business model underpinned by frugality, efficiency, and exacting standards to deliver low prices for customers. Several times the chain had reinvented its appeal. Two network-wide renovations a decade apart had drawn an increasingly broad consumer base, while the company had recently shifted its product mix to incorporate 40% more fresh food to address demand for healthy categories. As a lifelong employee, CEO Jason Hart had seen the company's U.S. foothold grow sixfold over three decades to reach an estimated $40 billion in revenue. Yet concerned with recent changes to retailing, Hart faced intense competition from other grocery chains with their own private label products, like Walmart, and online merchants, like Amazon. How should Aldi’s business model, designed for simplicity and with minimal staffing, respond to the competition? Should it offer home delivery? In-store pickup of preordered items? Further cut staff costs by fully switching to self-checkout? The success of the planned expansion might depend on getting such choices correct.

Keywords: Corporate Strategy; Expansion; Scope; Grocery; Strategy; United States

Citation

Educators

A Winning Strategy (B): Innovation in Olympic Speed Skating

By: Rebecca Karp, Maria Roche, Maisie Wiltshire-Gordon and Tom Quinn

January 2025 |
Supplement |
Faculty Research

This case describes the aftermath of decisions made by two innovators in the Olympic sport of speed skating: the U.S. Men’s team, which devised a new approach to the team pursuit event; and Nils van der Poel, a Swedish skater who created a new training plan that defied conventional wisdom. The U.S. Men’s Team decided to race with the new technique in competitions leading up to the 2022 Winter Olympics, which allowed other teams to imitate the technique; Norway and the Russian Olympic Committee both surpassed them on the medal stand. Van der Poel released a detailed account of his training plan after earning gold and setting world records in both his events.

Keywords: Sports; Disruptive Innovation; Innovation Strategy; Competitive Strategy; Competitive Advantage; Sports Industry; United States; Sweden; Netherlands; Norway

Citation

A Winning Strategy (A): Innovation in Olympic Speed Skating

By: Rebecca Karp, Maria Roche, Maisie Wiltshire-Gordon and Tom Quinn

January 2025 |
Case |
Faculty Research

This case describes two innovators in the Olympic sport of speed skating: the U.S. Men’s team, which devised a new approach to the team pursuit event following their disappointing performance in the 2018 Winter Olympics; and Nils van der Poel, a Swedish skater who responded to his own disappointing showing in 2018 with a new training plan that defied conventional wisdom. Both van der Poel and the U.S. Men’s Team saw promising initial results from their innovations. But they faced a decision: whether to reveal their new techniques. The U.S. Team’s strategy was easily imitated if competitors witnessed it in a race, but it was a risk not to test it in competition before the Olympics. If van der Poel shared his training plan, other athletes might use it to surpass him, but it also could enrich the sport as a whole. Should they share their techniques, and if so, when?