Let chaos reign, then rein in chaos - repeatedly: managing strategic dynamics for corporate longevity
Let chaos reign, then rein in chaos – repeatedly: managing strategic dynamics for corporate longevity
Burgelman R.A., Grove A.S. Strategic Management Journal, October 2007, Vol. 28 No. 10, Start page: 965, No. of pages: 15
Purpose – to examine the role of strategy-making in corporate survival. Design/methodology/approach – points out that relatively few companies survive for very long periods of time as independent entities. Suggests that this may be related to the occurrence of nonlinear strategic dynamics, with which a strategy-making process geared towards relatively stable industry dynamics is unable to cope. Asks how a company’s strategy-making process can be designed to effectively maintain a balance between adaptation to the current environment (“fitness”) and ability to adapt to a changing environment or seek out new viable environments (“evolvability”). Develops a conceptual framework discussing strategic dynamics situations and the internal ecology of strategy-making before presenting a case study of Intel Corporation. Considers the matching of strategy making and strategic dynamics in terms of Intel’s evolution. Discusses Intel’s exit from the dynamic random access memory (DRAM) industry; its sole source strategy; the battle between reduced instruction set computing (RISC) and complex instruction set computing (CISC) within Intel; and the major course change that the company undertook from 1998 onwards, when top management concluded that the microprocessor business alone would not sustain the company’s future growth objectives. Suggests that the most important contribution top management can make is its strategic leadership: appropriately balancing induced and autonomous strategy processes to meet the challenge of different strategic dynamics situations. Originality/value – concludes that “strategic leadership– how top management designs the strategy-making process – is the means with which leadership style exerts an influence on corporate longevity”.ISSN: 0143-2095Reference: 36AY872DOI: 10.1002/smj.625
Keywords: Corporate strategy, Evolution, Leadership, Strategic choices, Turbulence
