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Extending Chakravarthy's strategy framework to cope with constrained and unstable environments: imitative catching-up e-commerce at Patagon.com

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1 Author(s)
R. Montealegre ; Coll. of Bus. & Adm., Colorado Univ., Boulder, CO, USA

Most of the extant electronic commerce (EC) models implicitly assume a developed country environment that is technologically advanced and information rich, with a stable, nondisruptive political and economic climate that favors free markets, and with unconstrained access to technological, financial, and human resources. These are not features found in most less-developed country environments. This study empirically analyzes the history of Patagon.com, a pioneer in Latin American Internet-based financial services. Its primary contribution is to extend Chakravarthy's strategy framework for coping with turbulence to conceptualizing imitative catch-up EC strategy in constrained and unstable environments, such as those in less-developed countries. The case analysis also suggests some practical implications that should help to better understand how organizations that are not pioneers of novel breakthroughs in developed countries can participate in EC

Published in:

IEEE Transactions on Systems, Man, and Cybernetics - Part A: Systems and Humans  (Volume:30 ,  Issue: 4 )