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Antecedents and temporal dynamics of strategic divergence in multinational corporations: Evidence from Europe

  • Brauer, Matthias
  • Heitmann, Mark
Registered author(s):

    Coordinating consistent strategy implementation has been identified a key challenge for multi-national corporations. Based on intraorganizational evolutionary models of strategy formation, this paper thus empirically investigates the antecedents and temporal dynamics of strategic divergence. Strategic divergence is the deviation of a firm's resource allocation decisions with its articulated concept of corporate strategy. Large-scale empirical analysis of 11,406 resource allocation decisions of twenty-five publicly listed, multi-national and multi-business European firms indicates that decision type, operational and divisional manager involvement in decision making and structural context changes exert a significant influence on strategic divergence. Importantly, results further suggest that firms’ levels of strategic divergence tend to increase over time and that the antecedents of strategic divergence have a differential impact as time passes.

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    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 48 (2013)
    Issue (Month): 1 ()
    Pages: 110-121

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    Handle: RePEc:eee:worbus:v:48:y:2013:i:1:p:110-121
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