STRATEGIC CHOICE VERSUS ENVIRONMENTAL DETERMINISM: A DEBATE REVISITED

This paper revisits the debate between environmental determinism and strategic choice. It compares the two theories on their philosophical underpinnings, their view of decision making, and the environment. Although we argue that the theory of strategic choice generally prevails, we recognize that there are factors that restrict the choice and discretion of managers. Here we look at three types of factors—industry related factors (extent of regulation and stage of life cycle), organization related factors (characteristics of top management and organization size), and time related factors and explain how each of these factors either inhibit or enhance managerial discretion. Implications for theory and practice are discussed.