In our last post on theoretical foundations we described dynamic capabilities. While the dynamic capability perspective can be regarded as the main-stream view in strategic management research, we want to present today an emerging stream: strategy as practice.
The dynamic-capabilities perspective takes a bird’s-eye view on how firms renew and drive dynamic adaptation processes. It is assumed that firms possess and can exercise certain capabilities. Much critique on the dynamic-capabilities view circles around the issue that too little is known about the micro foundations of these capabilities.
Strategy as practice as a promising research approach to uncover those micro foundation. The strategy-as-practice perspective deals with what actors within organizations do, it deals with (bounded) rationality, action, interaction and habituation. Strategy as practice is also more open about the outcome. While the traditional strategic management research is ultimately always after organizational performance the strategy-as-practice view recognizes also other achievements such as creation of common goals or change of mental models as outcomes in their own right. It is also informed by the behavioral theory of the firm.
We therefore think that strategy-as-practice view could be more appropriate for research on organizational future orientation and also produce insights that are more actionable and that have higher practical relevance.
Further reading: D. Golsorkhi et al. (2011) Cambridge Handbook of Strategy as Practice, Cambridge University Press.