Cross-Channel Management : How Top Managers Empower Middle Managers in Top-Driven Strategic Renewal

The fast adoption of new digital technologies (e.g. smartphones, tablets) enables consumers to ubiquitously access the Internet and switch between online and offline channels when shopping (Neslin & Shankar, 2009). In order to keep up with this development, multichannel incumbents need to better integrate their store business with their online business. For most retailers, this transition from multichannel management to cross-channel management entails a strategic renewal process, which is usually initiated from the top. However, the success of such a transformation process heavily depends on an effec-tive interplay between Top Management (TM) and Middle Management (MM) (Floyd & Lane, 2000). Therefore, we look at how TMs empower (disempower) MMs strategizing in the context of top-driven strategic renewal. We approach this research question with a comparative case design (Eisenhardt, 1989). Our case studies are informed by 73 interviews with TMs and MMs from six major Euro-pean multichannel retail firms. This paper combines two so far rather separate streams of literature - Empowering Leadership (e.g. Spreitzer, 2008) and MM Involvement in Strategy Process (e.g. Wooldridge, Schmid & Floyd, 2008). As a result, we map out TMs day-to-day leadership practices aimed at empowering their MMs for strategic contributions during the organizational transformation towards cross-channel management. We also offer a novel theoretical perspective on strategic leadership and in particular on MMs organizational strategizing in the context of strategic re-newal.