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Strategy Theory Using Analogy: Rationale, Tools and Examples

Author

Listed:
  • Glenn R. Carroll

    (Graduate School of Business, Stanford University, Stanford, California 94305)

  • Jesper B. Sørensen

    (Graduate School of Business, Stanford University, Stanford, California 94305)

Abstract

We discuss why analogical reasoning is widely used in strategy formulation, implementation, and evaluation despite its assessment by many logicians as a weak form of logical argumentation. Given this popularity, we consider how analogies might be used to assist in strategic decision making to develop better strategy arguments, including those consistent with the theory-based view of strategy. We develop an extended analogy between the online platforms Tripadvisor and Glassdoor to illustrate our main points. We also describe in steps how to build and evaluate strategy analogies and we suggest why working with analogies may be helpful to those practicing the theory-based view of strategy.

Suggested Citation

  • Glenn R. Carroll & Jesper B. Sørensen, 2024. "Strategy Theory Using Analogy: Rationale, Tools and Examples," Strategy Science, INFORMS, vol. 9(4), pages 483-498, December.
    • Handle: RePEc:inm:orstsc:v:9:y:2024:i:4:p:483-498
    DOI: 10.1287/stsc.2024.0174
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    References listed on IDEAS

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