The entrepreneurial M-form, strategic integration in global media firms

Many researchers believe that bounded rationality prevents CEOs in large, c omplex, multidivisional ("M-form'') corporations from personally formulatin g division-level strategies. Instead, CEOs are seen as guiding a "bottom-up " process whereby division managers propose strategies for review and appro val by the corporate office. Contrary to this view, we argue that CEOs in g lobal media firms frequently drive strategy in a "top-down" manner, especia lly when their firms seek to expand by integrating the activities of two or more existing divisions. We refer to such firms as "Entrepreneurial M-form s." and maintain that their reliance on an activist CEO offers benefits: (1 ) in turbulent environments, when the use of slow, bottom-up planning proce sses risks forfeiting first-mover advantages; and (2) when expansion entail s major capital commitments, and division managers may be reluctant to acce pt the career risks associated with sponsorship of "bet-the-company'' proje cts.