Forces in strategy formation

Abstract

This chapter proposes that organizational strategy formation should be characterized theoretically as a process that is subject to several interacting forces, rather than represented by separate discrete decision-models or theoretic perspectives, as is commonly done in the strategic management literature. Based on an extensive review of relevant theory and empirical work in strategic decision-making, organizational change theory, cognitive and social psychology, and strategy processes, seven kinds of “forces” – rational, imposed, teleological, learning, political, heuristic, and social – are identified as interacting in and having significant influence on the strategy formation process. It is further argued that by applying a holistic “forces-view” of the significant and interacting influences on strategy formation, we can better understand the dynamics and challenges in managing the process of defining and changing organizational strategies.

Citation

Steensen, E. and Sanchez, R. (2008), "Forces in strategy formation", Sanchez, R. (Ed.) A Focused Issue on Fundamental Issues in Competence Theory Development (Research in Competence-Based Management, Vol. 4), Emerald Group Publishing Limited, Leeds, pp. 131-172. https://doi.org/10.1016/S1744-2117(08)04004-8