Applied Strategy and Experimentation

In this course, we delve into recent advancements in strategy, employing a scientific approach to formulate and validate firm strategies. The seminar is divided into two parts. First, using the 'theory-based view', we perceive strategy as a tailored plan comprising hypotheses about a firm's resources, activities, competitive position, and means to attain superior returns. Important to this approach are the concepts of value creation and value capture. Based on multiple perspectives- industry view, resource based view, relational view, platform economics- to craft new strategies and formulate hypotheses addressing specific challenges.

In the second part, we shift our focus to empirical methods for refining and test these hypotheses. For instance, randomized controlled trials allow us to rigorously assess the internal validity of our theories. With the abundance of data in business, such methods offer robust evidence on strategy effectiveness. This scientific approach is gaining traction, particularly in tech-focused firms, reflecting the evolving nature of strategy as a more precise and evidence-driven discipline.

Understand how to develop rigorous firm theories via specifying constructs, relationships, and boundary conditions. Learn how to translate firm theories into testable hypotheses Know how to implement experiments and related methodologies to evaluate and verify these hypotheses or overarching firm theories.

Prof. Dr. Johannes Luger

Yuqi Zheng

Seminar (offered every fall semester), 6 ECTS

Master students with a basic understanding of the domain of strategy and who want to learn more about the latest advances in the field (incl. the use of experiments or scientific methods to solve strategy questions).

The seminar is limited to 20 participants. Students need to submit their transcripts (Bachelor's and Master's level) showing all the courses taken and grades obtained prior to this course. 

English

All materials will be provided through OLAT.

Mid-term (50%). Group presentation about the development of firm theory, 7^th week of the semester, open book, group grading (re-examination in the following week in case of justified absence).

Final exam (50%). Individual essay on description of experiment to test “firm/business theory”.  max. 5 page, open book.

Yuqi Zheng