The micro-politics of strategy formulation

Narayanan, V K;Fahey, Liam Academy of Management. The Academy of Management Review (pre-1986); Jan 1982; 7, 000001; ProQuest pg 2!

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The Micro-Politics of Strategy Formu#ation'

V. K. NARAYANAN (ni)ersity o* Kansas L AM !A"#Y North+estern (ni)ersity
The )*+ine++ po icy iterat*re traditiona y ha+ empha+i,ed the rationa and normative a+pect+ of +trategy form* ation in organi,ation+. Thi+ paper deve op+ a framewor- 10 e.p icate +trategic deci+ion ma-ing from / po itica per+pective. wit! partic* ar reference to th0 evo *tion of coati tion+ aro*nd i++*e+. The content of a +trategic deci+ion i+ po+ited a+ emerg ingfrom interna dynamic+. The *ti ity of the (ramcwor- i+ demon+trated )y it+ compari+on with the rationa mode of +trategic deci+ion ma-ing. ,ra-itiona# approa.hes to the *ormu#ation o* organi/ationa# strategies, pre)a#ent in 0usiness po#i.y #iterature, ha)e emphasi/e- the rationa# annormati)e aspe.ts o* -e.ision ma1ing 23ourgeois, 1980' 4o*er & 5.hen-e#, 1 9 7 8% 6e.ent , #iter.atu re ho+e)er, suggests a gro+ing 7nterest 7n )ie+ing strategy *ormu#ation as a po#iti.a# pro.ess 28a. 8i##an, 1978; 8urray, 1978; Pettigre+, 1977; Quinn, 1978% ,o a #arge e9tent, this interest has 0een stimu#ate- 0y the -e.ision pro.ess mo-e# postu#ate- 0y :yert an- 8ar.h 219;<%, primari#y in the .onte9t o* operating -e.isions 2=nso**, 19;!% =#though )a#ua0#e e**orts at en#arging the mo-e# to in.#u-e strategi. -e.isions ha)e 0een un-erta1en 2=##ison, 1971> :arter, 1971% 0usiness po#i.y #iterature sti## #a.1s a .oherent *rame+or1 +ithin +hi.h to stu-y strategi. -e.ision ma1ing *rom a po#iti.a# perspe.ti)e ,his paper -e)e#ops a *rame+or1 to e9p#i.ate strategi. -e.ision ma1ing triggere- in organi/ations 0y strategi. issues, +ith parti.u#ar re*eren.e to the evo *tion of coa ition+ aroun- issues or .on*#i.ts, ,he .ontent o* a strategi. -e.is#on is posite- as emerging *rom these interna# -ynami.s ,he 77ti#it%' o* the *rame+or1 is -emonstrate- through its .om parison +it'% the rationa# mo-e# o* strategi. -e.ision ma1ing

Strategy an$ Strategic %ecisions

4o*er an- 5.hen-e# i-enti*y Athe 0asi. .hara. teristi.s o* the mat.h an organi/ation a.hie)es +ith its en)ironmentA as the .ommon theme un-er#ying most -e*initions o* strategy 2.ontent% 21978, p &% 8int/0erg 21977%, suggests that an organi/ation's posture to+ar- its en)ironment is re)ea#e- as Aa pattern in a stream o* -e.isions,A that is, -e.isions that re)ea# .onsisten.y o)er time Fo##o+ing 8int/ 0erg, this paper )ie+s strategy as the .umu#ati)e out.ome o* a series o* strategi. -e.isions = deci +ion here is -e*ine- as a spe.i*i. .ommitment to a. tion 2usua##y a .ommitment o* resour.es or ena.t ment o* pre.e-ents% 1trategic re*ers to those -e.i sions that ha)e not 0een en.ountere- 0e*ore in @uite the same *orm, *or +hi.h no pre-etermine- an- e9 p#i.it set o* or-ere- responses e9ists in the organi/a tion an- +hi.h are important in terms o* the re'BoCr.es .ommitte- or the pre.e-ents set 28int/ 0erg, 6aisinghani, & ,heoret, 197;; 8itro** & Dm sho**, 1979% ,he rationa# mo-e# -es.ri0es strategy *ormu#a tion as a set o* pro.e-ures> i-enti*i.ation o* .urrent strategy, ana#ysis o* en)ironment, resour.es angaps, i-enti*i.ation an- e)a#uation o* strategy op tions strategi. .hoi.e an- imp#ementation 2=n -re+C, 1971; King & :#e#an-, 1978; 8.Ni.ho#C 1977% Eithin this *rame+or1, the mi.roe.onomi. assumption o* a unitary )oi.e +ithin the *irm has 25

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',he authors +ish to than1 ?or-on Fit.h *or his .riti@ue o* an ear#ier -ra*t o* this manus.ript, Portions o* this paper +ere presente- at the 8i-+est =.a-emy o* 8anagement 8eetmgs :in.innati 1980

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Ta&le The %ynamics of Strategic

1tm ! c 2eci+ion 1iage 3harac er +tir+ :hara.teri/ation ,riggers Activation #n-i)#-ua# re.ognition o* potentia# 7ssues 6e.ognition o* symp #oms, per*orman.e gaps, po#iti.a# am0i tions, et., 5ear.h *or -ata 5. nseFma1#ng Ges.ription o* symp toms, signa#s, -is .ontinuities Mo) i4ca on 7n-i)i-ua# to .o##e.ti)e level a+areness Pu0#i. arti.u#ation oi 7ssues 7n*ormn# sear.h *or -ata re#ationships Fee#ing out po#iti.a# a**inities JH.n#opment o* .o##e. ti)e .ons.iousness o* symptoms Questioning o* assump tions, pre*eren.es, .auseFe**e.t re#ation ships 7nh#a##n-#)#-ua#s an- those +hom they .onta.t =..ess stru.tures 5o.ia# net+or1s Per.ei)e- simi#arity 7n .ogniti)e maps 5o#i-arity 0ase- on )ie+ o* 7ssue Nee- to organi/e

Pro.ess

:ontentFthemes

7n-i)i-ua#s 8aBor a.tors 5tru.tura# -eterminants =##ent#ona# pro.esses> sa#ien.e o* 7ssues, ee., Forma# an7n*orma# net+or1s 7na0i#ity to reso#)e 7ssues :on.atenation o* su0 Be.ti)e an- organi /ation e9perien.e =+are 7n-i)i-ua#

,ransition me.hanism Iut.ome

=+are .o##e.ti)ity

7mp#i.ations *or strat.gy *ormu#ation

Ir,an#/at#ona# .ogni /an.e o* strategi. 7ssues

Dmergen.e o* shape o* strategi. a#temnt#)es an- po#iti.a# .ommit ments

pre-ominate-> organi/ationa# pre*eren.es are assume- to 0e 1no+n an- .onsistent, .auseFe**e.t re#ationships *air#y +e## un-erstoo-, an- in*orma tion a)ai#a0i#ity su**i.ient to ta.1#e most issues 4o+e)er, ea.h o* the a0o)e assumptions in par ti.u#ar an- the rationa#Fnormati)e mo-e# 7n genera# .an 0e @uestione- as to their representati)eness o* organi/ationa# rea#ities 28urray, 1978% =t the root o* this @uestioning #ies a .on.eption o* organi/a tions as po#iti.a# entities, to +hi.h +e no+ turn

= Political 'onception of (rgani)ations

Fun-amenta##y, organi/ations are po#iti.a# en tities> .oa#itions o* interests an- -eman-s emanatF

ing *rom +ithin an- outsi-e organi/ations 28int/ 0erg, 1978; ,hompson, 29;7% Gi**erent interests an- -eman-s arise 0e.ause organi/ations are #oose #y .oup#e- systems 2Eei.1, 297;%, in*ormation 0oun- 25imon, 19&7%, resour.e .onstraine- 2P*e**er & 5a#an.#1, 1978%, an- are .hara.teri/e- 0y un.#ear te.hno#ogies 2:ohen, 8ar.h, & I#sen, 1972% an-i**erentia# #in1ages to their en)ironments 2:hi#-, 1972; Gun.an, 1972; La+ren.e & Lers.h, 19;7% 7n traorgan#/at#ona# pro.esses are -ynami.> 0oun -aries +ithin organi/ations .hange, parti.ipation in -e.ision -omains )aries, an- -e.isions are -i**eren tia##y 7mport##nt (n-er these .on-itions, organi/a tions .an 0e )ie+e- as #oose stru.tures o* interests

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1 %ecision Ma*ing
1trateg(c 2eci+(on 1tage 3oa e+cence
,empora# a##ian.e o* 7n-i)i-ua#s +ith share- interests 5hare- .ogniti)e maps Nee- to poo# resour.es 7ntra.oa#it#ona# 0ar gaining negot#at#ons =rti.u#ation o* issue potentia# programs o* a.tion

5nco*nter
6Dpresentation anBusti*i.ation o* strategi. a#ternat#)es D9p#i.it initiation o* n.t#ons Po+er"in*#uen.e p#oys 6etrospe.ti)e rationa #i/ation Legitima.y -e)e#opment ?oa# *ormation 6esour.e a##o.ation

2eci+ion
Irgani/ationa# engage ment aroun- issue Jones o* .onsensus

7nter.oa#itiona# 0ar gaining, negotiations, .ompromise 5trategi. a#ternati)es 6esour.e a##o.ations ?oa#s

:oa#ition #en-ers, *o# #o+ers :oa#ition stru.ture anpro.esses Dna.te- en)ironment :omp#e9ity o* issue :onsensus o* a.tion program

:oa#ition mem0ers and antagonists Po+er"ir,*#ue##.e -istriF 0ution Po#iti.a# .ommitments =..ess to in*ormation 6e.ognition o* .oa#iF tion's intentions antheir impa.t D9p#i.>ation o* issue 5pe.#*#.at#on o* .#aims, interests, positions

AFi-u.iary ro#esA 8CF-iators 6esour.e a)ai#a0i#ity Irgani/ation s#a.1 Po+er"in*#uen.e -isF tri0ution Quasireso#ution o* .on *#i.t

:ommitment to sponsor strategi. a#ternaF ti)es

5pe.i*i.ation o* pre *erre- strategi. a# ternati)es

,rir;g.ring o* other strategi. issues D)u#ution o* issue spe .i*i. po#iti.a# a#ignments

:ommitment to a.tion Postponement o* -e .ision Non-e.ision ,rans*ormation into #aC.r issue 5trate#i. .hange 6esour.e a##o.ation Po#iti.a# resi-ues

an- -eman-s, .ompeting *or organi/ationa# atten tion an- resour.es, an- resu#ting in .on*#i.ts that are ne)er .omp#ete#y reso#)e- =s some ha)e note2,ushrnan, 1977%, su.h a .hara.teri/ation typi.a##y is a po#iti.a# .on.eption o* organi/ations, ,he a..ent o* the rationa#Fana#yti. .on.eption is on stratesy .ontent It neg#e.ts the tur0u#ent un-er .urrents o* organi/ationa# po#iti.s mani*est in the intera.tions among )arious .oa#itions +ithin the organi/ation as they en-ea)or to in*#uen.e strategi. -e.isions ,he po#iti.a# perspe.ti)e 0rings these -ynami.s into sharp *o.us From this perspe.ti)e, the .ontent o* strategi. -e.#sions is )ie+e- as tin out.ome o* transa.tions o* po+er an- 7n*#uen.e

,hus, po#iti.a# pro.esses in organi/ations gain .ausa# import in e9p#anations o* strategi. -e.isions ,he imp#i.ation is that an e9amination o* strategy .ontent a#one is insu**i.ient to e9p#ain strategi. .hoi.es In#y 0y in)estigating the organi/ationa# pro.esses out o* +hi.h strategies emerge, .an one un-erstan- an- e9p#ain why they .ome to 0e = -ominant theme in the po#iti.a# .on.eption o* organi/ations is the ro#e o* .oa#itions in organi/a tiona# -e.ision ma1ing :oa#itions e)o#)e in organi /ations -ue to #imite- resour.es, inter-epen-en.e o* tas1s, #imite- a)ai#a0i#ity o* in*ormation, -i**eren tia# 0ut #imite- po+er, an- -i**eren.es in anmutua#ity o* interests 2P*e**er & 5a#an.#1, 1978;

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,hompson, 19;7% Ehen a sing#e su0system 2or 7n -i)i-ua#% .annot impose an organi/ationF+i-e so#u tion, .oa#itions are *orme- to ena.t -e.isions ,here*ore, as ?amson 219;2% has note-, .oa#ition *ormation is important through its impa.t on the .ontent o* -e.isions :oa#ition 0eha)ior has 0een the o0Be.t o* in@uiry 0y game theorists, so.ia# psy.ho#ogists, an- po#iti .a# s.ientists ,hese three -is.ip#inary groups ha)e a-opte- -i**erent phi#osophi.a# approa.hes anha)e progresse- re#ati)e#y in-epen-ent#y 28ur nighan, 1978% Lo+ .on)ergen.e among these theories, restri.ti)e assumptions un-erpinning them 2as in game theory an- so.ia# psy.ho#ogy%, an- -i* *eren.es in settings 2as in po#iti.a# s.ien.e% #imit their app#i.a0i#ity 7n short, a .omprehens#)e theory app#i.a0#e to organitationa settings has yet to 0e -e)e#ope-

et a# , 197;% ,he terms gestation an- reso#ution are use- here mere#y to in-i.ate the emergent .hara.ter o* the pro.esses, that 7s, the pro.esses are not a#+ays .#ear to the a.tors in)o#)e- in situ ?estation Aaivatton. =.ti)ation o..urs +hen in-i)i-ua#s 0e.ome .ogni/ant o* issues or .on.erns sa#ient to them G#t*erent triggers su.h as per*orman.e gaps 2Ja#tman & Gun.an, 197;%, en)ironmenta# oppor tunities 2Erapp, 19;7%, human nee-s 28.:#e##an& 3urnham, 197;%, an- in-i)i-ua#s' po#iti.a# am0i tions 2Ly#es & 8itro(, 1980% may a.ti)ate in -i)i-ua#s +ithin an organi/ation 6e.ent resear.h suggests that issue re.ognition at the in-i)i-ua# #e)e# 7s a high#y intuiti)e an- persona#isti. pro.ess 2Ly#es & 8itro**, 1980% Further, the .on.erns an- issues that in-i)i-ua#s *o.us on are in*#uen.e- signi*i.ant #y 0y their attentiona# pro.esses 2Eei.1, 19;9% ,he e9tent to +hi.h attentiona# pro.esses *o.us on spe.i*i. issues is a *un.tion o*> 27% per.ei)e- sa #ien.e o* issues; 22% e9tent o* .ompeting .#aims on the in-i)i-ua#'s time an- resour.es; 2<% po#iti.a# *a.tors su.h as anti.ipate- reta#iatory a.tion 0y others 23a.hra.h & 3arat/, 19;2; Gah#, 19;1%; an2&% per.ei)e- a0i#ity to initiate a.tion, *ear o* *ai#ure an- .onse@uent #oss o* .re-i0i#ity 2Ly#es & 8itro**, 1980% ,he issues an- .on.erns that arise -uring this stage are #i1e#y to 0e symptomati. an- *u//y ,his is part#y 0e.ause in*orma# in*ormation sour.es o*ten trigger issue re.ognition mu.h ear#ier than -o signa#s *rom *orma# .hanne#s o* .ommuni.ation 2=gui#ar, 19;7; 8int/0erg, 197!% =s a resu#t in -i)i-ua#s may engage in a )ariety o* Asense ma1ingA 2Eei.1, 19;9% a.ti)ities ,he essen.e o* this pro.ess is su..in.t#y .apture- 0y Quinn in re#ating ho+ a .ompany presi-ent e9p#ores strategi. 2in this .ase, go)ernment re#ate-% issues> 7 start .on)ersations+ith a num0er o* 1no+#e-ge a0#e peop#e .1 .o##e.t arti.#es 1 .o##e.t -ata *rom any reasona0#esour.e *rom these a pattern e)en tua##yemerges 7t's #i1e *ittingtogethera Bigsa+pu/ /#e an- on.eit's .rysta##i/e-,it's not -i**i.u#tto e9 p#ain tC others 21978,p 1&% ,he a.ti)ation phase is .omp#ete +hen in-i)i-ua#s ha)e -e)e#ope- a su**i.ient #e)e# o* .#arity an- a A#anguageA a0out their .on.erns to 0e a0#e to ar ti.u#ate the issues in an inte##igi0#e +ay to other organi/ationa# mem0ers
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5tages o* 5trategi. Ge.ision 8a1ing

,he mo-e# o* strategi. -e.ision ma1ing -e)e#op e- in this paper is an.hore- in the *o##o+ing as sumptions> 21% the e00 an- *#o+ o* organi/ationa# intera.tions in)o#)e- in su.h -e.isions may 0e 0roa-#y .apture- 0y a se@uen.e o* mi#estones or passages; 22% organi/ationa# po#iti.s mani*ests itse#* in the e)o#ution an- -isintegration o* .oa#itions; an- 2<% -i**erent .oa#itions e)o#)e to ma1e -i**erent #e.#s#ons or simi#ar -e.isions o)er time 23a#-ri-ge, 1971; ,ushman, 1977; Ear+i.1 & 6ee-, 197!% ,hese mi#estones an- passages are presente- in Figure I. ,a0#e 7 pro)i-es in summary *orm the -istinguishing .hara.teristi.s o* the )arious -e.ision phases 3roa-#y, the -e.ision pro.ess en.ompasses t+o phases, gestation an- reso#ution ,he gestation phase in)o#)es a perio- o* time +hen a.ti)ities 0y se#e.te- mem0ers resu#t in an issue 2-e.ision% 0eing sponsore- *or reso#ution an- an a#ternati)e2s% *or a-option It em0ra.es those -e.isiona# a.ti)ities that others ha)e terme- Apro0#em *ormu#ationA 25agasti & 8itro**, 197<%, Aattention -ire.tingA 25imon, 19&7%, Apro0#em *in-ingA 2Poun-s, 19;9%, or Ai-enti*i.ationA 28int/0erg et a# , 197;% 6eso #ution mar1s a perio- +hen an organi/ation ap praises a#ternati)es an- -e.i-es +hether or not to ta1e a.tion 6eso#ution has 0een .hara.teri/e- as Apro0#em so#)ingA 25agasti & 8itro**, 197<%, A.hoi.eA 25imon, 19&7%, or Ase#e.tionA 28int/0erg

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!igure + The Stages of Strategic %eelslon Ma*ing

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Mo)i i,ation. ,he mo0i#i/ation stage entai#s the e#e)ation o* issue a+areness *rom the in-i)i-ua# to the organi/ation #e)e# Irgani/ationa# a.tions are .o##e.ti)e en-ea)ors, an- the .apa0i#ity to -e*ine a strategi. issue an- to impose or imp#ement a so#u tion o*ten -oes not rest +ith a sing#e in-i)i-ua# or organi/ationa# su0unit 2Quinn, 1978% ,his #ea-s in -i)i-ua#s to mo0i#i/e aroun- shan +,1.on.erns re su#ti ngin the emergen.e o* a .o##e.ti)e a+areness o* the issue2s% 2I0ers.ha##, 197<% =.ti)ities are in*or ma#> a great -ea# o* in*ormation is e9.hange- among mem0ers, an- a##ian.es 0egin to ta1e shape 2Erapp, 19;7% =s Gennis Erong 21980% has note-, a minima# -i**use so#i-arity aroun- issues is a prere @uisite *or initia# e**orts to organi/e po#iti.a##y *or issue reso#ution = net+or1 o* interre#ationships among in-i)i-u a#s -e)e#ops aroun- issues -uring this stage ,he stage is more or #ess protra.te- -epen-ing on the num0er o* in-i)i-ua#s a.ti)ate-, their po#iti.a# .re-i0i#ity, s1i##s an- .ommitment, an- the e##tent o* .ompeting issues in the organi/ation 7n-i)i-ua#s may resort to e9terna# sour.es o* assistan.e su.h as .onsu#tants to gain po#iti.a# .re-en.e an- #e)erage 28a.8i##an, 1978%or to *a.i#itate mo0i#i/ation pro .esses as in team 0ui#-ing 2Ga)is, 1970% 7n a--i tion, stru.tura# *eatures o* the organi/ation su.h as a..ess stru.tures 2:ohen .t a# , 1972%, so.ia# net +or1s 26o0erts & I'6ei##y, 1979%, an- per.ei)esimi#arity in in-i)i-ua#s' .ogniti)e maps .an either .onstrain or *a.i#itate mo0i#i/ation 8o0i#i/ation has important imp#i.ations *or strategi. -e.ision ma1ing *or at #east t+o reasons First, the 0roa- .ontours o* potentia# strategi. .hange 0egin to emerge 5e.on-, pu0#i. arti.u#ation o* issues ten-s to reshape so.ia# rea#ity +hi.h in -i)i-ua#s o*ten interna#i/e as pu0#i. *a.t 28erton,

19!7% ,hus, po#iti.a# .ommitment to -e.isions or potentia# -e.#s#on out.omes 0ui#-s up -uring this stage 3oa e+cence. = .oa#ition emerges as the a+are .o##e.ti)ity grapp#es +ith the una)oi-a0i#ity o* a. tion to reso#)e strategi. issues =.tion re@uires some integration o* e**orts an- spe.i*i.ation o* intent; these are *re@uent#y a0sent an- unne.essary -uring the pre)ious stages =s the pro.ess o* -e.ision ma1 ing un*o#-s, a transitory a##ian.e o* in-i)i-ua#s -e)e#ops> in-i)i-ua#s +ho poo# their resour.es to o0tain a -esire- out.ome or to sponsor a set o* a#ternati)es, that is, a .oa#ition 2?amson, 19;2% ,he spe.i*i. .ontent o* the strategi. a#ternati)e2s% u#timate#y sponsore- 0y a .oa#ition is -etermine0y> 27% its interna# stru.tures an- pro.esses; 22% the en)ironment that it ena.ts; an- 2<% the .omp#e9ity o* the issue at han- :oa#ition mem0ers typi.a##y -o not possess e@ua# po+er"in*#uen.e resour.es ,hese ine@ua#ities resu#t in the emergen.e o* a po#iti.a# stru.ture +ithin the .oa#ition 28a.8i##an, 1978%> in-i)i-ua#s assume or are assigne- po#iti.a# ro#es +ithin it =symmetry o* re#ationships among .oa#i tion mem0ers is an important stru.tura# -etermi nant o* its pro.esses 24i.1son, 4inings, Lee, 5.hne.1, & Pennings, 1971% ,he nee- *or spe.i*i.ity i## a.tion re@uires that the emergent .oa#ition not mere#y arti.u#ate its -eman-s 0ut aggregate into a seeming#y .oherent program the mu#tip#e an- potentia##y .on*#i.ting -eman-s o* its mem0ers 2=#mon-, 19;0% =s +ith po+er"in*#uen.e resour.es, .oa#ition mem0ers -i* *er +ith respe.t to their aspirations, pre*eren.es, an- -eman-s 2:yert K 8ar.h, 1L1;<% :hoi.e among a#ternati)es in the *a.e o* -i)ergent pre*er en.es is pro0#emati.a# 2=rro+, 19;<% an- -e*ies .omputationa# #ogi. ,his #ea-s to 0argaining an-

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an a+areness o* their difference+ or estrangement *rom others ,he en)ironment that a .oa#ition ena.ts thus is .hara.teri/e- 0y a -egree o* .on*#i.t =s the .oa#ition 0e.omes a+are o* its )u#nera0i#ity to the a.tions o* others 2interna# an- e9terna# to the organi/ation%, estimates o* its o+n po#iti.a# .apa0i# ity an- the a..epta0i#ity o* propose- a#ternati)es enter into the .a#.u#us o* intra.oa#itiona# -e.ision ma1ing 7n a--ition, intra.oa#itiona# 0argaining an- ne gotiations may 0e more or #ess protra.te-, -epening on the nature o* the e9tant issue2s% 8ore .om p#e9 issues re@uire greater in*ormation pro.essing 2?a#0raith, 197<%, +hi.h may 0e re*#e.te- in more intense sear.h *or in*ormation 0y .oa#ition mem0ers an- the app#i.ation o* a greater num0er o* .riteria, that is, goa#s, to gui-e -e.isions 2:arter, 1971% (n.ertainty is a0sor0e- 0y a se@uen.e o* Bu-gments a0out the re#ia0i#ity an- sa#ien.e o* in *ormation an- 0y a hierar.hy o* thresho#- #e)e# goa#s 2:arter, 1971; :yert & 8ar.h, 19;<%; 0oth o* these emanate *rom the 0argaining an- negotiations that are per)asi)e -uring this phase 7n summary, the gestation stage .enters on the e)o#ution o* issues as organi/ationa# .on.erns =s 3a.hra.h an- -arat# 219;2% ha)e note-, issues ha)e to 0e raise- an- initiate- 0y someone 0e*ore they .an 0e reso#)e- ,he gestation phase .on.#u-es +ith the emergen.e o* a .oa#ition o* interests .ommitteto reso#)ing an issue in a spe.i*i. +ay 6eso#ution

negotiations 0ase- on si-e payments an- e9er.ise o* po+er as the primary me.hanism 0y +hi.h a#ter nati)es are appraise- an- sponsore,he emergent .oa#ition possesses an i-entity o* its o+n in re#ation to the #arger organi/ation =s ,or ran.e 21977% notes, this i-entity is 0ase- on an a+areness o* i-ene++ on the part o* mem0ers an-

5nco*nter. =s the .oa#ition 0egins to sponsor its pre*erre- strategi. a#ternati)e2s%, -e.ision ma1ing enters a stage in +hi.h the .oa#ition must intera.t +ith other organi/ationa# entities 2su.h as in -i)i-ua#s, other .oa#itions, an- su0units% ,his stage is .hara.teri/e- 0y 0i#atera# negotiations 0e t+een groups 2:arter, 1971% rather than +ithin the same group 2.oa#ition%, a .hara.teristi. o* the pre)ious stage ,he essen.e o* a .oa#ition's tas1 is to pre)ai# upon the organi/ation to a..ept its pre*eren.e an<0

propose- a#ternati)es 5ome might )ie+ this as a pro.ess o* se-u.ing the organi/ationa# e#ites 2Ke##ey, 197;% ,o a.hie)e its purposes, the .oa#i tion engages in the -ep#oyment o* gam)it+" +hi.h are -e*ine- as any strategem or means a .oa#ition emp#oys to a.hie)e its goa#s 6am)it+. =t #east t+o types o* gam0its .an 0e i-enti*ie-> su0stanti)e an- tempora# 5u0stanti)e gam0its in)o#)e the *orm an- su0stan.e o* a .oa#i tion's arti.u#ation an- rationa#i/ation o* its posi tion ,empora# gam0its re*er to the timing an- se @uen.ing o* its arguments 5u0stanti)e gam0its in)o#)e e**orts to a#ter the organi/ation's goa# stru.ture, resour.e a##o.ations, an- so.ia# rea#ity ?oa# re#ate- gam0its might in )o#)e se#e.ti)e#y a-)o.ating -e.ision .riteria that *a)or the .oa#ition's position 2or go7##s% an-emonstrating that propose- .ourses o* a.tion are in 1eeping +ith the pre*eren.es o* others in the organi/ation 6esour.e a##o.ation gam0its in)o#)e -emonstrating the instrumenta#ity o* resour.e .om mitments to the a.hie)ement o* organi/ationa# goa#s 5u.h gam0its might .enter on the promotion o* spee#*#. strategi. a#ternati)es 2the means% to a.hie)e 2pre-etermine-% goa#s Legitima.y gam0its in)o#)e managing the sym0o#i. or Ae9pressi)eA *un.tions o* management 2i e , organi/ationa# 0e #ie*s, attitu-es, per.eptions, myths, sym0o#s, et. % to .reate a .#imate or mi#ieu that *a.i#itates a.hie)e ment o* the .oa#ition's goa#s ,empora# gam0its are inten-e- to -istra.t organ i/ationa# attention a+ay *rom or *o.us it on spe.i*i. a#ternati)es or aspe.ts o* a#ternati)es, se#e.tepie.es o* in*ormation, an- so 011 ,hey a#so may 0e inten-e- to or-er the +ay e#ements o* an issue are en.ountere- 0y the rest o* the organi/ation 5u.h gam0its in.#u-e A1iteF*#ying,A Are- herrings,A -etai#ing an a#ternati)e's a-)antages 0e*ore its -isa-)antages, or se#e.ti)e#ysupporting a#ternati)es on opportune o..asions 3oth types o* gam0its are inten-e- to Busti*y 25ta+, 1979% an- rationa#i/e the .oa#ition's pre *erre- a#ternati)es 7n*ormation is sought to sup port the .oa#ition's position an- to -is.re-it op ponents' arguments; .ontrary e)i-en.e o*ten is sup presse- 2=rgyris K 5.hon, 197&; 8itro** K Dm sho**, 1979% ,he nee- *or the appearan.e o* ra tiona#ity rather than rationa#ity per se, -e*ine- in organi/ationa# terms, un-er#ies in*ormation sear.h an- -issemination -uring this stage

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,he e)o#ution an- -uration o* this stage is as mu.h a *un.tion o* opponents' rea.tions an- .om mitments as it is o* the .oa#ition's po#iti.a# A*inesseA or the e**e.ti)eness o* its gam0its 5tru. tura# *eatures su.h as -i)ergen.y in goa#s, a..ess to in*ormation, an- positions in organi/ationa# hierar .hy an- issue re#ate- imp#i.ations su.h as resour.e .ommitments an- .hanges in organi/at#on stru.ture .an potentia##y a**e.t the e)o#ution o* this stage 2eci+ion. =s the en.ounter stage -ra+s to a .#ose, /ones o* .onsensus an- -issent 0e.ome .#earer> positions .rysta##i/e, an- the rami*i.ations anpo#iti.a# imp#i.ations o* a#ternati)es 0egin to 0e un-erstoo- 7n terms o* a.tors, the -e.ision re )o#)es aroun- A*i-u.iary ro#esA 28a.8i##an, 1978% =## mem0ers .annot simu#taneous#y par ti.ipate in 0argaining an- negotiating ,he pro.ess ta1es p#a.e +ithin the e9isting in *rastru.ture o* po+er -istri0ution in the organi/a tion ,he .ontent o* the -e#i0eration is ostensi0#y goa# spe.i*i.ation an- the appraisa# o* merits an-emerits o* )arious a#ternati)es ,he a.tors mayap pear rationa#, an- may 0e intended y so +ithin the /ones o* .onsensus 4o+e)er, /ones o* -issent typi.a##y e9ist, an- they #ea- to .ompromise an- a. .ommo-ation as me.hanisms o* -e.ision =s a resu#t, resour.e a)ai#a0i#ity, organi/ation s#a.1, anpo+er -istri0ution may signi*i.ant#y in*#uen.e the a.tua# -e.ision, as + L11as the -uration anintens#ty o* this stage 28anns & 8ar.h, 1978% ,he a.tua# -e.ision may assume -i**erent *orms> 2a% .ommitment to some a.tion; 20% postponement o* -e.ision to a *uture -ate; 2.% non-e.ision or -ropping the issue a#together; or 2-% trans*orma tion, or portraying the issue as a symptom o* a #arger issue yet to 0e reso#)e- 5u.h out.omes genera##y #ea- to a @uas#reso#ution o* .on*#i.ts 4o+e)er, resi-ues remain that may trigger other issues an- #ea- to -i**erent .oa#itions in the *uture :oa#ition e)o#ution an- strategi. -e.isions are in tera.ti)e 5u0se@uent to the -e.ision, organi/ationa# a.tors may 0e e9pe.te- to in-u#ge in some *urther issue re#ate- a.ti)ity 5u.h a.ti)ities in.#u-e e9 post un.ertainty a0sorption to e9er.ise a Po##yanna Niet/s.he e**e.t 2:arter, 1971%, ritua#s o* inaugura tion, a sho+ o* so#i-arity among .oa#itions, or a simp#e re#ease o* energy a*ter the .hange is ena.te23e.1har- & 4arris, 1977% ,hese a.ti)ities are primari#y sym0o#i. an- may ser)e to so#i-i*y or

a#ter the e9isting so.ia# rea#ity o* the organi/ation ,he stages presente- here are inten-e- to repre sent mi#estones in the e)o#ution o* a strategi. -e.i sion ,he a.tua# e)o#ution may e9hi0it regression, progression, .y.#ing, an- -e.ay among these stages For e9amp#e, i* a .oa#ition .annot agree on an a#ter nati)e 2-uring .oa#es.en.e%, the mem0ers may re)ert to *urther mo0i#i/ation 2regression% = strongF+i##e- presi-ent .an impose a so#ution im me-iate#y a*ter issue re.ognition or a.ti)ation 2pro gression% 8int/0erg et a# 2197;% note numerous e9 amp#es o* -e.ision .y.#ing =n issue may 0e -rop pe- any time 2-e.ay% -ue to the emergen.e o* other more sa#ient issues, .hanging nee-s o* mem0ers, or re.ognition o* po#iti.a# *a.tors that hin-er reso#u tion

7mp#i.atioG#i an$ :on.#usions

= num0er o* imp#i.ations o* the mi.roFpo#iti.a# or .oa#itiona# mo-e# o* strategy *ormu#ation pre sente- here may 0e in-i.ate- 0y Bu9tapositioning the mo-e# +ith the more pre)a#ent rationa# mo-e# o* strategy -etermination ,he t+o mo-e#s in)o1e -i**erent *rames o* re*eren.e in -es.ri0ing anstu-ying the *ormu#ation o* organi/ationa# strate gies ,he rationa#Fmo-e# is -epen-ent on o0Be.ti)e *rame+or1s; its uti#ity #ies in ren-ering a)ai#a0#e a normati)e ana#yti.a# .a#.u#us to -eri)e +hat 8int/ 0erg 21977% has terme- an Ainten-e-A strategy ,he mo-e# ta1es as gi)en a .ertain -egree o* .onsensus among -e.ision ma1ers; it assumes that strategy *ormu#ation .an 0e un-erstoo- 0y treating organi /ations as i* they are .entra##y .oor-inate- pur posi)e in-#)i-ua#s 2=##ison, 1971% 7n many .ases this is a *ruit*u# assumption as it pro)i-es a use*u# ana#yti.a# shorthan- *or un-erstan-ing pro0#ems o* strategy 4o+e)er, it o0s.ures the persistent s#ate o* a**airs +ithin organi/ations that the Ama1erA o* strategy is not a sing#e in-i)i-ua# 0ut a +et o* po#iti.a# a.tors Eithin the> >>ti.a# .on.eption o* strategy *ormu#ation, .onF, CM#5 among po#iti.a# a. tors is not a gi)en; it must 0e nurture- an- -e)e#op e- Eith respe.t to in-i)i-ua# strategi. -e.isions, the o0Be.ti)ity o* the rationa# mo-e# must 0e .ou.h e- +ithin a po#iti.a# .onte9t> the nat*re of a ter native(+) +pon+ored and the e.tent to which they are accepted" modified" or re7ected i+ dependent on the power&inf *ence di+tri)*tion within and acro++ the re evant coa ition(+). .1

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7n a simi#ar )ein, the rationa# mo-e# .an pro)i-e o0Be.ti)e reasons +hy strategi. -e.isions are .hosen an- +hy they su..ee- or *ai# 2e g , pro-u.tFmar1et .hoi.e, uti#i/ation o* AsynergyA% Eithin this perspe.ti)e, *ai#ures in strategi. issue re.ognition, -e)e#opment, an- imp#ementation are )ie+e- as ana#yti.a# short*a##s Net a po#iti.a# perspe.ti)e a--s some .riti.a# insights as to +hy some strategi. issues -J not emerge, are suppresse- 2i e , ne)er rea.h the -e.ision phase%, or are )igorous#y supporte- in an organi/ation =n ana#ysis o* strategi. issues as -is.usse- in this paper she-s #ight on in*#uen.es that hin-er re.ognition o* -e.ision re#ate- )aria0#es an-"or, i* re.ogni/e-, +hy they may not 0e a.te- on From a po#iti.a# perspe.ti)e, the+e fai *re+ in +trategic i++*e recognition" deve opment" and re+o *tion may )e a+cri)ed to po itica infea+i)i ity or the in+ (f&icient power and inf *ence of organi,a tiona actor+. 7mp#i.it in the po#iti.a# perspe.ti)e is the sym 0o#i. si-e o* management> coa itiona inf *ence+ in +trategic deci+ion ma-ing may )e )oth +*)+tantive and +ym)o ic. =#though the instrumenta# )a#ue o* su.h .on.epts as strategi. p#anning, pro-u.tFmar1et port*o#io, -istin.ti)e .ompeten.e, an- synergy in strategy *ormu#ation is +i-e#y a.1no+#e-ge- 2as in the rationa# mo-e#%, their sym0o#i. )a#ue genera##y is un-eremphasi/e- ,hese .on.epts .an 0e )ie+eas su0stanti)e gam0its +ith sym0o#i. o)ertones use- 0y a .oa#ition to a.hie)e its -esire- out.omes ,his ena0#es one to un-erstan- su.h e)i-en.e as presente- 0y 5arra/in 21977F78%that Ap#anningA in .ertain Fren.h organi/ations +as rea##y a p#oy 0y top management to .entra#i/e po+er ,he poiit#.a# perspe.ti)e'po#nts to the per)asi)e ness o* .on*#i.t among a.tors in the .onte9t o* strategi. -e.isions 7n a .on*#i.t *i##e- mi#ieu, the a. tors may -isguise intentions an- +ithho#-, -istort, or manipu#ate in*ormation Further, the goa#s that are espouse- an- the in*ormation that is e9.hangemay 0e #a-en +ith sym0o#i. o)ertones, ma1ing it -i**i.u#t to assess their re#ia0i#ity ,he =na#yti.a# rigor o* the rationa# mo-e# is -epen-ent on the a)ai#a0i#ity o* re#ia0#e -ata, 0ut the .o##e.tion, e)a#uation, an- uti#i/ation o* su.h -ata are high#y pro0#emati.a# *rom a po#iti.a# perspe.ti)e 8any authors separate strategy *ormu#ation animp#ementation into t+o -istin.t phases 25teiner & 8iner, 1977% 6itua#isti. assertions a0out the in separa0i#ity o* these phases not+ithstan-ing, the raF

tiona# mo-e# genera##y is ta1en to imp#y that .om mitment to a -e.ision .an 0e rea#i/e- a*ter the -e.i sion is ma-e 2=n-re+s, 1971% From a po#iti.a# perspe.ti)e, commitment to a +trategic deci+ion )egin+ to evo ve dunng the ear y pha+e+ of deci+ion ma-ing (rather than after the deci+ion i+ made). ,his has +i-e rami*i.ations =t a minimum, su.h .ommitment .an #ea- to .ons.ious /If un.ons.ious -istortion o* in*ormation anpromotion I* sup pression o* a#ternati)es =t the e9treme, in-i)i-ua#s may #ea)e the organi/ation i* the a#ternati)es they sponsor are not a-opte- Ir in-i)i-ua#s thus th+arte-, as note- 0y Erapp 219;7%, may present their pre*erre- a#ternati)es as a me.hanism to reso#)e an a#together -i**erent issue at yet another time :oa#itions an- strategy *ormu#ation are intera. ti)e> the resi-ue #e*t 0y su.h a.tions as strategi. -e.isionsF.ommitment, re-istri0ution o* resour.es, an- @uasireso#ution o* .on*#i.t may pre.ipitate *ur ther .oa#ition *ormation in organi/ations an- thus ser)e to trigger *uture strategi. issues 7n this sense, an imp#i.it assumption o* the rationa# perspe.ti)e that -e.ision .ontent .an 0e -i)or.e- *rom its 2organi/ationa#% .onte9t may not 0e *u##y re*#e.ti)e o* organi/ationa# rea#ity ,he .oa#itiona# mo-e# o* strategy *ormu#ation suggests that ogica incrementa i+m (8*inn" 1998) (+ a more appropriate de+cription of the proce++ of +trategy ma-ing than that imp ied in the ana ytica +cheme of a +trict y rationa conception. =#ter nati)es must 0e -e)e#ope-, .on*#i.ting goa#s ane)a#uation .riteria must 0e .ompromise-, .onsen sus must 0e re.on.i#e-, an- po#iti.a# antagonists must 0e appease-> there are no rea-yFma-e *or mu#ae an- so#utions = .riti.a# imp#i.ation o* the re.ognition o* the po#iti.a# mi#ieu o* the strategy *ormu#ation arena is that the po#iti.s o* -e.ision ma1ing must 0e manag e- Bust #i1e its ana#yti.a# or rationa# si-e 7n-ee-, n .onse@uen.e o* the .oa#itiona# mo-e# presentea0o)e is that form* ating the 3: itent of +trategy in ./vita) yentai + managing it+ conte.t and proce++e+. For instan.e, the pro.esses o* the generation anuti##/at#on o* strategi. in*ormation must 0e manag e-; these pro.esses are pro0#emati.a# 7n his pro )o.ati)e essay, Erapp 219;7% re.ogni/es this +hen he points out that goo- managers usua##y uti#i/e many more .hanne#s o* in*ormation thnn o*ten is re.ogni/e-, so as to a)oi- the potentia# 0iases an<2

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the po#iti.a# un-erpinnings o* in*ormation *rom anyone sour.e 5imi#ar#y, strategi. issue i-enti*i.a tion, -e)e#opment, an- reso#ution in)o#)es the management o* in-i)i-ua#s, -epartments, proBe.t teams, an- so on, an- their interre#ationships ,his, in turn ne.essitates mana ging the stru.ture anpro.ess o* strategy *ormuiation 5u.h stru.tures an- pro.esses o*ten are -i**erent *rom those re @uire- *or imp#ementation =rgyris an- 5.hon 2197&%, 8itro** an- Dmsho** 21979%, an- others may +e## 0e right +hen they argue thr t a.ti)ities su.h as .on*#i.t management, team 0ui#-ing, anorgani/ation' -e)e#opment shou#- *orm an integra# part o* strategy *ormu#ation 7n summary, this paper has -e)e#ope- a *rameF

+or1 *or un-erstan-ing an- stu-ying the mi.ro po#iti.s o* strategy *ormu#ation :urrent#y, the ra tiona# mo-e#, +hi.h *o.uses on the content o* strategies, -ominates the 0usiness po#i.y #iterature, ,he po#iti.a# perspe.ti)e tra.es the in*#uen.e o* organi/ationa# conte.t an- portrays ho+ interna# po#iti.a# pro.esses -etermine or mo-i*y strategy .ontent It is suspe.te- that e**e.ti)e top managers ha)e an intuiti)e grasp o* these po#iti.a# pro.esses an- if is suggeste- that e**e.ti)e strategi. manage ment entai#s managing the organi/ationa# .onte9t Bust as mu.h as the strategi. .ontent Ge)e#opment an- re*inement o* the po#iti.a# perspe.ti)e there*ore is ne.essary *or an un-erstan-ing o* strategi. man agement

6e*eren.es
=gui#ar, F 1c8nn ng the )*+ine++ environment. Ne+ Nor1> 8a. mi#ian, 19;7 =#mon-, ? = 7ntro-u.tion in ? = =#mon- & J 5 :o#eman, 2D-s %, The po itic+ ;$( the deve oping area+. Prin.eton, N J > Prin.eton (ni)ersity Press, 19;0 =##ison, ? , 5++ence o7$dec + on4 5.p aining the 3<)an mi++i e cri+i+. 3oston> Litt#e, -rown, 1971 =n-re+s K 6 The am $f=p.$ of corporate +trategy. 4ome+oo:ohen, 8 G , 8ar.h J 0 , & I#sen J P = gar0age can mo-e# o* organi/ationa# .hoi.e Admini+trative 1cience 8*arter y. 1972, 17, 1$2! :yert, 6 8 O & 8ar.h J ? A )ehaviora theory of the firm. Dng#e+oo- :#i**s N J > Prenti.eF4a## 19;< Gah# 6 = ?ho govern+@ 2emocracy and power in an American ci A. Ne+ 4a)en :onn > Na#e (ni)ersity Press 19;1 Ga)is 5 3ui#-ing more e**e.ti)e teams (nnovation. 1970, 75, <2F&1 Gun.an, 6 ? :hara.teristi.s o* organi/ationa# en)ironments an- per.ei)e- en)ironmenta# un.ertainty Admini+trative 1cience 8*arter y" 1972, 17 <1<$<27 ?a#0raith J 2e+igning comp e. or+ani,otion+. 6ea-ing 8ass > =--ison$Ees#ey 197< ?amson, E = :oa#it#on *ormation at presi-entia# nominating .on)entions American Bo*rna of 1ocio ogy. 19;2, ;8, 157$171 4i.1son, G J , 4inings, : >6 , Lee : = O 5.hne.1, 6 D , & Pennings J 8 = strat$>gi. .ontingen.ies theory o* 7n traorgani/ation po+er Admini+trative 1cience 8*art Cr y. 1971 1; 21;F229 4o*er, : E , 7M 5.hen-e# G 1trategy&orm* ation4 concept+. Ne+ Nor1> Eest, 1978 AnatA icat

777 > Go+ JonesF7r+in, 4717

=nso**, 4 I. 3orporat0 +trategy. Ne+ Nor1> 8.?ra+$4i77, 19;! =rgyris, : , & 5.hon G = Theor)" in practice4 (ncrea+ing pro fe++iona effectivene++. 5an Fran.is.o> JosseyF3ass, 197& =rro+, K J 1ocia choice and individ*a va *e+. 2n- e-, Ne+ Nor1> Ei#ey, 19;< 3a.hra.h P , & 3arat/, 8 5 ,+o *a.es o* po+er American >o itica 1cience Review. 19;2, !;,9&7$9!2 3a#-ri-ge, J V >ower and cotif&ict (n the *n vet.dty. Ne+ Nor1> Ei#ey, 1971 3e.1har-, 6 , & 4arris, 6 , :r+an ? ona tran+ition+4 Managing comp e. chan$ e. 6ea-ing, 8ass > =--ison$Ees#ey, 1977 3ourgeois, L J 5trategy an- en)ironment> = .on.eptua# 7n tegration Academy of Management Review. 1980, ! 2!$<9 :arter D D ,he 0eha)iora# theory o* the *irm an- top #e)e# .or porate -e.isions Admi i+tmtive 1cience 8*arter y. 1971, 1;, &1 CF&28 :hi#-, J Irgani/ation stru.ture, en)ironment an- perter man.eF,he ro#e o* strategi. .hoi.e 1ocio ogy. 1972,;, 1$22

Ke##ey ? 5e-u.ing the e#ites> ,he po#iti.s o* -e.ision ma1ing an- inno)ation in organi/ationa# net+or1s Academy of Management Review" 197; 1 ;;F7& King, E 6 , & :#e#an-, G , 1trategic p anning and po icy. Ne+ Nor1> Van Nostran- 6einho#- 1978 La+ren.e, P 6 O & Lers.h, J E :r+ani ation and environ ment. :am0ri-ge, 8ass > 4ar)ar- (ni)ersity Press 19;7

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1980,2!, 102F120 8a.8i##an, 7 : 1tnrtegy form* ation4 >o itica concept+. Ne+ Nor1> Ees#, 1978 8anns, : L , = 8u ;h, J I Finan.ia# a-)ersity, interna# .om petition an- .urri.u#um .hange in a uni)ersity Admi i+trative 1cience 8*arter y" 1978, <, !&1$!!2 8.:#e##an-, G : , = 3urham, G 4 Po+er 7s the great moti)ator Darvari E*+ine++ Review" 197;, 1F 22%, 100F 110 8.Ni.ho#s, , J >o icy mi -ing ind e.ec*tive actton; Ne+ Nor1> 8.?ra+ 4i##, 1977 8enon, 6 K 1oc i theory and +ot4 i+tr*ct*re. :hi.ago> Free Press o* ?#en.oe, 19!7 8in#/0erg, 4 ,he manager'9 Bo0> Fo#1#ore an- *a.t Darvard E*+ine++ Review" 197!,!< 2&%, &9F;1 8in#/0erg, 4 5ira#egy *ormu#at#on as a histori.a# pro.ess (n temat ona 1t*die+ of Management! :rganiG( on. 1977,7 22%,25F&0 8in#/0erg, 4 Irgan#/a##on po+er an- goa#s> = s1e#eta# theory 7n G D 5.hen-e# = : E 4o*er 2D-s %, 1tra eg c manage ment4 A & ew view of )*+ine++ po icy ind p nning. 3oston> #i##ie, 3ro+n = :o , 1978, ;&F80 8in#/0erg, 4 , 6a#s#n8hani, G K ,heoret, = ,he stru.ture o* unstru.ture- -e.ision pro.esses Admini+trative 1cience 8*arter y. 1996"H1"HF6-H$&6. 8##rorr, 7 7 , = Dmsho**, J 6 In strateg#. assumption mi#1ing> = -ia#e.ti.a# approa.h to po#i.y an- p#anning Academy of Man gement Review. 1979,&, 1$12 8urn#ghan, J K 8o-e#s o* .oa#ition 0eha)ior> ?ame theoreti., so.ia# psy.ho#ogi.a#, #in- po#iti.a# perspe.ti)es >+ycho og(ca E etin. 1978, 8!, 11<2F175< 8urray, D = 5trategi. .hoi.e as a negotiate- out.ome Management 1c ence" 1978,2&,9;0F972 I0ers.ha##, = 1ac a conf ict and +ac a movement+. Dng#e+oo:#i**s, N J > Prenti.eF4a##, 197< Pettigre+, = 8 5trategy *ormu#ation as a po#iti.a# pro.ess (n temat ona 1t*die+ of Management t1 :rgan G( on" 1977, 7 22%,75$57 P*e**er, J , K 5a#an.#1, ? 6 The e.terna contro of organ G($ tion+4 A re+o*rce dependence per+pective. Ne+ Nor1> 4arper K 6o+, 1978

Ly#es, 8 = , = 8#trorr, 7 7 Irgani/ationa# pro0#em *ormu#a$ t#on> 0n empiri.a# stu-y Admini+trative 1cience 8*arter y"

Poun-s, E F Pro.esses o* pro0#em *in-ing (nd*+tria Management Review. 19;9, II, 1$19 Quinn, J 3, 5trategi. .hange> Logi.a# 7n.rementa#ism 1 oan Management Review. 1978,20,7$21 6o0erts, 1. 4 , &2 I'6ei##y, : = 5ome .orre#ates o* com mun#.at#on ro#es in organ#/at#ons Academy of Management Bo*rna " 1979, >L2, &2$!7 5ag8t#, F 6 , K 8itro**, I. 7 Iperations resear.h *rom 7he )ie+pointo* genera# systems theory, :mega. 197<,;,;9!F 709 5arra/in, J Ge.entra#i/e- p#anning in a #arge Fren.h .ompany> =n 7nterpreti)e stu-y (nternat onc= 1t*d(e+ of Management! :rgani,ation+. 1977$78,7 2<F&%, <AF!9 5imon, 4 = Adm n +trat ve )ehavior. Ne+ Nor1> 8a.8i##an, 19&7 5#a+, 3 8 6atinna#ity an- Busti*i.ation in organ#/at#onn##i*e 7n 3 5ta+ K 3. 3. :ummings 2D-s %, Re+earch (n organi,a tiona )ehavior /+.+4!". II5. ?reen+i.h, :onn > J=7 Press, 1979 5tetner, ? = , & 8iner, J 3 Management po icy and +trategy. Ne+ Nor1> 8a.mi##an, 1977 ,hompson, J :rgan G( ion+ (n eaton. Ne+ Nor1> 8.?ra+ 4i77,79;7 ,orran.e, J 5+trangemenr. a tenatton and e.p oitation4 A +ac Ig 3 t approach to ht*onca= materia i+m. Ne+ Nor1> :o#um0ia (7#77'ersi#yPress, 1977 ,ushman, 8 L = po#iti.a# approa.h 10 organi/a##ons> = re)ie+ an- rationa#e Academy of Management Review" 1977, 2, 20;F21; Ear+i.1, G , K 6ee-, , A theory of p*) ic )*rea*cracy. :am 0ri-ge, 8ass > 4ar)ar- (ni)ersity Press, 197! Eei.1, K The +ocia p+ycho ogy of organ dng. 6ea-ing, 8ass > =--ison$Ees#ey, 19;9 Eei.1, K D-u.a#iona# organ#/a#ions as #oose#y.oup#e- systems Admini+trative" 13ience8*arter y" 197;, 21, 1F19 Erapp, II. D ?oo- managers -on't ma1e po#i.y -e.isions Dar vard E*+ine++ Review. 19;7,&! 2!%, 91-99. Erong, G 4 >ower4 (t+ form+. )a+e+ and *+e+. Ne+ Nor1> 4arper K 6o+, 1980 Ja#rman, ? , K Gun.an, 6 1trategie+ for p anned change. Ne+ Nor1> Ei#ey, 1996.

G. J. 'arayanan i+ an A++i+tant >rofe++or of :rgan ,aC tion and Management in the 1choo of E*+ine++" <niver+t ty of Jan+a+. Kiam Lahey (+ an A++i+tant >rofe++or of >o icy and 5n vironment (n th $ J. K. Je &ogg 6rad*ate 1choo of Management" 'orthwe+tern <niver+ity.

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