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Strategy Formulation

Definition

"Development of alternative courses of action for mission accomplishment." (Marks et.al., 2001, p. 363)

Key References

  • Miller, D., & Friesen, P. H. (1978). Archetypes of Strategy Formulation. Management Science, 24(9), 921–933. https://doi.org/10.1287/mnsc.24.9.921
    • Identified 10 types of strategy formulation archetypes, hypothesized 6 would lead to successful outcomes and 4 would lead to failure, defined several environmental, organizational, and strategy variables.
  • Mintzberg, H. (1978). Patterns in Strategy Formation. Management Science, 24(9), 934–948. https://doi.org/10.1287/mnsc.24.9.934
    • Chronological assessment of strategy formulation from 1920-1974 in contexts of war and the automobile industry, evaluates strategy change in relation to strategy types (deliberate, emergent, intended, realized, unrealized.
  • Grant, R. M. (1991). The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation. California Management Review, 33(3), 114–135. https://doi.org/10.2307/41166664
    • Proposed practical framework for strategy formulation
      • Step 1 Resource identification
      • Step 2 Identify capabilities
      • Step 3 Appraise potential advantages
      • Step 4 Select strategy
      • Step 5 Assess gaps in resources

Key Measurement

  • Selvin & Colin 1997: Survey, 5 items, 7-point Likert scale, items listed in original article
  • Hart & Bradbury 1994: survey, 17 items, 7-point Likert scale, alphas > .061, items listed in original article
  • Mathieu 2020: Team Process Scale: Strategy formulation

Recent Articles

  • Karagozoglu, N. (2017). Antecedents of team performance on case studies in a strategic management capstone course. The International Journal of Management Education, 15(1), 13–25. https://doi.org/10.1016/j.ijme.2016.11.001
    • Explored why some teams work better than others in a strategy management case study. Examined several variables associated with team attributes and found that advanced preparation had a positive relationship with expert assessed team performance.
  • Luciano, M. M., Nahrgang, J. D., & Shropshire, C. (2020). Strategic leadership systems: Viewing top management teams and boards of directors from a Multiteam Systems Perspective. Academy of Management Review, 45(3), 675–701. https://doi.org/10.5465/amr.2017.0485
    • Proposes a new consideration of team management teams as a part of a strategic leadership system that enhances team performance, under the premise that emphasizing attention to working independently and interdependently enhances shared performance.
  • Andrews, R., Boyne, G. A., Law, J., & Walker, R. M. (2009). Strategy formulation, strategy content and performance. Public Management Review, 11(1), 1–22. https://doi.org/10.1080/14719030802489989
    • Tested the independent effects of strategy formulation on organizational performance. Found that the formulation variables of logical incrementalism and strategy absence have negative impacts on performance.