Planned and emergent strategy

Abstract

Since the 1970s, there has been an ongoing debate in the literature as to the most effective means of formulating strategy. One camp has touted the merits of formal, deliberate strategic planning, while the other camp has maintained that strategy simply emerges over time as a firm takes various actions in response to environmental stimuli. Recently, researchers have recognized the more realistic view that deliberately planned strategies transform during implementation through an emergent strategy formation process. This chapter will review the literature on deliberate and emergent strategies, exploring the perspectives of the proponents and critics from each academic camp. It will then examine the two perspectives as ends of a continuum, citing a number of strategy types that exist between the end points. The concept of planned emergence, or a complementary deliberate and emergent approach, will next be discussed followed by an examination of the numerous empirical studies that have sought a link between formal strategic planning and organizational performance. Finally, a discussion of the emergent impact of chaotic systems and improvisation on deliberate strategy will be followed by perspectives on the future of strategy creation and implementation.