The Organizational View of Strategic Management

Abstract

The organizational view of strategic management views strategic decisions as outcomes of organizational goals and environmental influences. Central research streams are institutional theory and network theory on environmental influences, and learning theory and resource dependence theory on organizational interaction with the environment. Currently active research topics are centered on how societal groups influence organizations, intraorganizational individuals and groups pursue their own goals, and organizations pursue their goals by choosing strategic actions that maneuver societal constraints. Research is beginning to crystallize a view of environments and organizational structures interacting closely with strategy, with organizations learning to shape their interorganizational networks and surrounding institutions to their benefit. Comparison of performance and aspiration levels on multiple goals helps organizations time and direct strategic changes. The organizational view is a prominent part of strategic management and has enough unanswered questions to spur significant future research.