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Strategy Creation in the Periphery: Inductive Versus Deductive Strategy Making

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  • Patrick Regnér

Abstract

Although strategy process research has provided careful and in-depth descriptions and examinations of strategy, micro-level processes and activities have been less commonly evaluated, especially as regards strategy creation and development. This paper examines how managers create and develop strategy in practice. A dual longitudinal case methodology, including a single in-depth study combined with a multiple retrospective study is used, involving four multinational companies. The findings show a twofold character of strategy creation, including fundamental different strategy activities in the periphery and centre, reflecting their diverse location and social embeddedness. Strategy making in the periphery was "inductive", including externally oriented and exploratory strategy activities like trial and error, informal noticing, experiments and the use of heuristics. In contrast, strategy making in the centre was more "deductive" involving an industry and exploitation focus, and activities like planning, analysis, formal intelligence and the use of standard routines. Copyright 2003 Blackwell Publishers Ltd..

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  • Patrick Regnér, 2003. "Strategy Creation in the Periphery: Inductive Versus Deductive Strategy Making," Journal of Management Studies, Wiley Blackwell, vol. 40(1), pages 57-82, January.
  • Handle: RePEc:bla:jomstd:v:40:y:2003:i:1:p:57-82
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    References listed on IDEAS

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    Cited by:

    1. Maria Lusiani & Ann Langley, 2013. "Professionals as strategists? Channelling and organizing distributed strategizing," Working Papers 32, Department of Management, Università Ca' Foscari Venezia.
    2. Marko Rillo, 2008. "Studying Strategy Process in Organizations That Are Structurally Modulating between Exploration and Exploitation: Comparison of Computational Modelling and Case Study Approach," Working Papers 177, Tallinn School of Economics and Business Administration, Tallinn University of Technology.
    3. Genevieve Musca & Marie Perez & Linda Rouleau & Yvonne Giordano, 2010. ""Extreme" Organizational Ethnography: The Case of the Darwin Expedition in Patagonia," Post-Print halshs-00470018, HAL.
    4. Blomkvist, Katarina & Kappen, Philip & Zander, Ivo, 2014. "Superstar inventors—Towards a people-centric perspective on the geography of technological renewal in the multinational corporation," Research Policy, Elsevier, vol. 43(4), pages 669-682.
    5. Keupp, Marcus Matthias & Gassmann, Oliver, 2009. "Why do transnational approaches to international innovation fail?," Research in International Business and Finance, Elsevier, vol. 23(2), pages 206-222, June.
    6. Yamin, Mo & Sinkovics, Rudolf R., 2009. "Infrastructure or foreign direct investment?: An examination of the implications of MNE strategy for economic development," Journal of World Business, Elsevier, vol. 44(2), pages 144-157, April.
    7. Yamin, Mo & Andersson, Ulf, 2011. "Subsidiary importance in the MNC: What role does internal embeddedness play?," International Business Review, Elsevier, vol. 20(2), pages 151-162, April.
    8. Fasshauer, Ingrid, 2012. "Les interactions entre contrôle et stratégie : redéfinition du rôle des cadres intermédiaires et du levier interactif de contrôle," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/11150 edited by Berland, Nicolas.
    9. Elvira Periac & Sébastien Gand & Jean-Claude Sardas, 2014. "Government revival and public sector employees' agency," Working Papers hal-00969332, HAL.
    10. repec:spr:manint:v:51:y:2011:i:2:d:10.1007_s11575-011-0070-7 is not listed on IDEAS

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