Chapter 1: Strategic Flexibility

Under currently uncertain and fast-changing environments, it is important for firms to supplement their main strategy with alternative ones so that they can quickly change courses of actions. Strategic flexibility is thus an important factor for the viability and success of firms. Although previous research has emphasized the need for strategic flexibility, some firms are reluctant to do so since it requires high investments. Existing studies on strategic flexibility have emerged from various disciplines and drawn on diverse theoretical perspectives. Due to the increasing importance of strategic flexibility, this chapter reviews and summarizes existing studies on strategic flexibility based on the applications of strategic flexibility in various business disciplines, including management and strategy, business entrepreneurship, and marketing. The authors also summarize different theoretical perspectives, including upper echelons theory, resource-based view theory, and dynamic capabilities theory, as well as their limitations.