b'FACULTY HIGHLIGHTSRIVALRY AND TECHNOLOGYStrategy scholars are unanimous: Firms must under- by these contrasting examples of strategic foresight stand their competition. But technological changesvs. myopia under technological change, Assistant in the age of digital transformationartificial intelli- Professor Stephen Downing wanted to know: What gence, blockchain, etc., reshaping firm operations if strategic leaders think in analog terms about are beginning to rearrange who really competesdigital competition? What if some firms change their with whom. Consider two contrasting examples ofview of key rivals while others dont? What then are Microsofts gaming business and Amazons enter- the consequences of updating such competitive prise cloud business.perceptions too slowly or narrowly?HELPING REFUGEES THRIVEFirst, since the introduction of Xbox, Microsoft wasTo move beyond anecdotes and address these ques-competing head-to-head with Sony (PlayStation)tions empirically, he proposed a series of studies in and, to a lesser extent, with Nintendo (Wii). However,a submission to the Strategic Management Soci-the platforms upon which games and devel- etys (SMS) Strategy Research Foundation (SRF) Stephen Downing opers interact are shifting from physical consoles and games to online services hosted by Microsoft,Business history is filled withMU research suggests an organizations diversitymatization of refugees overall, and when refugees in Alphabet (parent of Google), and Amazon (acquiredclimate is a key contributor to helping refugeestheir unit perceived a climate of support for diversity.examples of nonthreateningthrive in their host nations.Twitch). As a result, Microsofts EVP of gaming, PhilHow members of minority groups perceive they Spencer, has reframed their main competitors asbusinesses that unexpectedlyAnn Peng and John Schaubroeck, both profes- are treated as individuals in an organization does Amazon and Google.usurped market share fromsors of management at the University of Missouri,not contribute to their thriving and striving as Second, Amazons former rival in online book selling,companies that were oncerecently studied refugees from the war in Syria whomuch when their social identity as a member of Barnes & Noble, usually imitated Amazons launcheswere employed and living in Turkey.the group is threatened. A weak diversity climate, comfortably at the top.and, separately, a perception that members of the While most previous research shows that beinghost society tend to stigmatize them, makes any Research in Strategic Management (RSM) Programemployed increases refugees productivity andfavorable treatment as an individual employee take grant, with the 2021 theme: Competitive Advantageassimilation into society, Peng and Schaubroecka backseat in how they conceive of their relationshipAnn Pengin the 21st Century. Downings proposal for studyingwanted to understand the aspects of these workto the organization and society, Schaubroeck said.the nature and dynamics of competitive relationsenvironments that can make refugees feel welcomed in digital transformation was one of three awardedand contribute to their new communities. Schaubroeck said it all comes back to the work unit SRF funding for the period of 2022-2023. This grantRefugees first meaningful contact can be throughclimate for diversity.will support the human and algorithmic collection oftheir employer if they are fortunate enough toWhile theres not much the organization can do data and other computational resources to be usedhave one. Employment can create what is calledabout an internal belief of stigma in a society, our in these studies aimed at helping strategic leadersa bridging identity, meaning a connection thatresearch showed that having a favorable diversity rethink rivalry as technology reshapes competitivegives one confidence to engage with host countryclimateat all levelsrenders that belief much less landscapes.nationals outside the organization and form anrelevant, he said.Seeing Tomorrows Competitorsidentity as a legitimate societal member. But itsThe researchers sampled 389 Syrian refugees Most entrepreneurs and strategic leaders knownot just about being employed, Schaubroeck said.employed in nine different organizations and 89 the competitors they face today; however, manyIts the extent to which one perceives one belongsseparate work units. The refugees were asked to dissimilar companies that may seem benign todayin the organization that really matters. Do they seetake 30 minutes off from their jobs to completeJohn Schaubroeckwithin two years (Barnesandnoble.com followedcould emerge as competitors tomorrow. Businessthemselves as real members? Our findings suggestthree surveys over a two-month month period, Amazon.com; Nook followed Kindle, etc.). But whenhistory is filled with examples of nonthreateningthats the first step to feeling like a member of theand their supervisors rated their levels of personal Amazon entered the enterprise software busi- businesses that unexpectedly usurped market sharesociety in which they have relocated.initiative at work.I Am Affirmed, but ness with its Amazon Web Services (AWS) cloudfrom companies that were once comfortably at theTheir research (with Ozgur Demirtas of KayseriThe number of refugees in the U.S. is increasing.Are We? Social computing suite, the leading enterprise softwaretop. For example, Amazon once was a threat only toUniversity in Turkey) found that refugee employeesMore than 11,000 refugees were resettled in thisIdentity Processes firms were either unaware or unmotivated to actbricks-and-mortar bookstores before it branchedsense that they were treated respectfully as individ- country in the previous government fiscal year. ThisInfluencing Refugees quickly in response to AWS. This led Founder/CEOinto selling everything, putting all kinds of traditionaluals in their organizations had a substantial impactcould increase tenfold in the current year as theWork Initiative Jeff Bezos to conclude: We faced no like-mindedretail stores at risk. When it expanded from sellingon the extent to which they personally identifiedgovernment has promised to increase admittanceand Community competition for seven years. Its unbelievable.products into cloud computing services, it collidedwith their organizations. Such identification, oreven more as the year moves on. SchaubroeckEmbeddedness While Microsoft demonstrated strategic foresight inwith Microsoft, Google, Salesforce, and IBM. Andseeing their membership as an important part ofbelieves he and his colleagues study findings canpublished in the updating its competitive perceptions, the competi- when Amazon launched delivery services, it beganwho they are, in turn contributed to their takinghelp businesses adjust their environment to betterApril 2022 issue tors of Amazon did not. And while Microsoft is nowcompeting with USPS, FedEx, and UPS. initiative at work and engagement with the localaccommodate refugees, helping them desireof Academy of well positioned for the next era of gaming, AmazonsHow can everyday entrepreneurs and strategiccommunities. and learn to contribute to their host society. AnManagement Journal.enterprise software competitors had to watch AWSmanagers prevent such surprises from happening toPeng and Schaubroeck found that this individu- improved quality of employment for refugees may take the lead in enterprise cloud computing (laterthem, or how can they predict today which compet- al-level process was much stronger when refugeenot only benefit the refugees, but the communities entered by Microsoft and Google, too). Motivateditors they could surprise tomorrow?employees perceived a lower level of societal stig- they settle in as well, said Schaubroeck.26 MANAGEMENT MATTERSMANAGEMENT DEPARTMENT 2022 ANNUAL REPORT 27'