A dynamic model of strategic change in growth-oriented firms

Abstract

The article proposes a dynamic model of strategic change processes in the growthoriented firm. It presents construct variables drawn from previous research to explore how innovation and change are enabled and inhibited. ᭹ These variables include the size of the firm and how habituated its routines have become, its levels of demographic diversity, internal conflict and staff morale, the change propensity of its top management team (TMT) and the availability of interpretive skills and extent of strategic issue diagnosis.᭹ Also implicated are the impact of external events and influences and the managerial schema, the set of shared beliefs that inform and guide the firm. All these variables, directly or indirectly, affect performance outcomes. The model enables a critical discussion of the ways in which growth-oriented firms can enhance their performance through a better understanding of dynamic, collective change processes.

The evolution of business knowledge in SMEs: conceptualizing strategic space

“…In order for knowledge renewal to take place, strategic space has to be created through a variety of mechanisms in order to allow existing activities to be reviewed. Time, space and resources to think about the business and to engage with others in critical debate and discussion are central to the formation of their personal approach to strategy (Perks, 2006;Pitt, 2005). exploiting what is already known within collective activities.…”

Key Factors for Shortening Response Time in the Strategic Issues Diagnosis Process

“…Issues can arise from a number of sources, both internal and external to the firm, but rarely does a strategic issue arrive in a wholly recognizable form. Information flows into the organization through many different channels; it arrives as a series of weak signals from a variety of sources; Pitt (2005) provides a good model that illustrates this point (see especially Figure 1, p. 310). The firm's scanning activities are the main tool used to transfer these signals to key decision makers (Heil 1991;Smith & Grimm 1991).…”

“…Traditional strategic planning systems often fail to assure timely response in states of high turbulence. Systems failure occurs due to the speed of change and low expectancy (Pitt, 2005) which creates discontinuities that impact the organization planning processes to determine an effective response. It is in these environments where the effectiveness of real-time or on-line systems, like SIM systems for strategic response are required.…”

“…Cognitive maps represent the beliefs held by an individual, and influence the manner in which actors assess and organize issues. Political interests arise due to the importance associated with strategic issues within the organization, resulting in the development of self-interested behavior in the diagnosis of issues (Pitt, 2005). Finally, issue characteristics influence the diagnosis process since every issue is unique requiring its own resolution process, limiting the firm's ability to use standard templates or familiar routines.…”

“…Over the past few decades there has been significant attention directed at the strategies a firm uses to obtain competitive advantage in a turbulent environment or an environment characterized by continuous change, uncertainty, or complexity. Strategic Issue Management (SIM) systems involve 'real-time' or 'online' processes for the development of capabilities to effectively handle discontinuities or crises that occur in turbulent environments (Ansoff, 1980(Ansoff, , 1991Pitt, 2005).…”