Strategic interactions and arenas: A sociological perspective on strategy

Abstract

We offer a view of organizational strategy derived from the strategic interaction perspective in sociology. We apply the perspective to the study of nonmarket strategy and social movements—the subfield of strategy concerned with the interactions between stakeholder activists and firms. The strategic interaction perspective calls on scholars to (1) pay attention to the local interactions occurring in specific arenas and to the direct outcomes of those interactions; (2) focus on the agency that players have in choosing among arenas and in selecting different tactics in those arenas; (3) appreciate the complex motives for engaging in strategic interactions, including emotional connections to particular ideologies or collective identities; and (4) recognize that each interaction involves multiple outcomes beyond the financial, including cultural outcomes. We conclude the essay by deriving broader implications for the field of strategy.