By Karolin Marx
In fresh years, a brand new kind of strategy-making has developed inside organisations, which makes a speciality of the continual improvement of strategic tasks. however, our figuring out of the pro administration of strategic projects is still restricted. Why do a little projects fail to materialize? What position does organizational context, and extra in particular its social element, play during this procedure?
Karolin Marx analyzes the impression of the social context, represented by means of the embeddedness of the initiative groups within the intrafirm community, at the functionality of strategic projects by way of learning a pattern of fifty four company strategic tasks. the consequences aid the importance of the social context for strategy-making. besides the fact that, it really is proven that social relationships aren't purely confident, yet may also abate the winning improvement of strategic projects. in addition, it really is underscored that exploratory tasks prosper in a special social surroundings than their exploitive opposite numbers. for that reason administration should still create a balanced setting during which either sorts of tasks can improve and continue to exist.
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Additional resources for The Role of the Social Context for Strategy-Making: Examining the impact of embeddedness on the performance of strategic initiatives
Sample text
The black box of strategy process is not directly observed, but causal relations between social context and initiative performance are explained by a process story. Hence, the following definition of process underlies this dissertation: Definition: Process is a line of logic which explains the causal relationship between one or several inputs (independent variables) and one output (dependent variable) without opening the black box of the process. Theoretical background 17 The concept of strategy, like the term "process," is not clearly defined in the research community.
Thus, the three models complement their ideas. Looking at the three models in more detail, one can recognize that they differ regarding the roles the single levels play within the strategy process. can influence the strategy-making process only in a very indirect way by forming the organizational context or conditions that facilitate the development and survival of strategic initiatives. Lovas and Ghoshal, however, give top management a much more active role as it is not only the central architect of the strategy-making process but can also influence the process directly.
Top management can set those systems in place and steer the selection of strategic initiatives. Depending on the form of the structural context, the selected strategic initiatives are more or less tightly coupled to the existing strategy. Therefore, the 40 Theoretical background structural context is perceived as a quite strict and rigid selection mechanism picking just those initiatives that fit to the pre-defined requirements (Burgelman, 1991). The strategic context involves few rules, many interactions, and politics and is therefore part of the informal context (Burgelman, 1983 alb, 1991).