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European Management Journal Vol. 24, No. 5, pp.

348–367, 2006
Ó 2006 Elsevier Ltd. All rights reserved.
0263-2373 $32.00
doi:10.1016/j.emj.2006.05.009

Actionable Strategy
Knowledge:
q
A Practice Perspective
PAULA JARZABKOWSKI, Aston Business School
DAVID C. WILSON, Warwick Business School

Increasingly the body of knowledge derived from Strategy is a key concept of organization theory.
strategy theory has been criticized because it is Broadly, it is the theoretical concepts and frame-
not actionable in practice, particularly under the works which guide the strategic decisions that influ-
conditions of a knowledge economy. Since strategic ence both the long and short-term objectives of an
management is an applied discipline this is a seri- organization (Mintzberg and Waters, 1985; Hickson
ous criticism. However, we argue that the theory- et al., 1986; Rumelt, Schendel and Teece, 1991). Much
practice question is too simple. Accordingly, this of today’s strategy knowledge is the culmination of
paper expands this question by outlining first the organizational research and theory that has devel-
theoretical criteria under which strategy theory is oped over the past forty-five years (see, for example,
not actionable, and then outlines an alternative per- Bowman, Singh and Thomas, 2002; Tsoukas and
spective on strategy knowledge in action, based Knudsen, 2002; Whittington, 2004). It comprises a
upon a practice epistemology. The paper is in three pervasive set of concepts and constructs that are
sections. The first section explains two contextual implicitly involved in the work of strategizing (Whit-
conditions which impact upon strategy theory tington et al., 2003). In addition to economic models
within a knowledge economy, environmental of firm positioning and competition (Porter, 1980),
velocity and knowledge intensity. The impact of strategy knowledge comprises theories of organiza-
these contextual conditions upon the application tion as diverse as the resource-based view (Barney,
of four different streams of strategy theory is exam- 1991) and complex adaptive systems (Levy, 1994; Sta-
ined. The second section suggests that the theoreti- cey, 1995). As Hafsi and Thomas note (2005) note,
cal validity of these contextual conditions breaks these key concepts of strategy knowledge have been
down when we consider the knowledge artifacts, the subject of intense debate in recent years. Despite
such as strategy tools and frameworks, which arise these paradigmatic disputes, one of the ultimate
from strategy research. The third section proposes goals of strategy knowledge is to act as a framework
a practice epistemology for analyzing strategy which can help inform and guide those managers
knowledge in action that stands in contrast to more who steer the strategic course of an organization.
traditional arguments about actionable knowledge. Strategy knowledge is thus intended to be actionable
From a practice perspective, strategy knowledge is knowledge.
argues to be actionable as part of the everyday
activities of strategizing. The paradox of this emerging field is that, despite its
Ó 2006 Elsevier Ltd. All rights reserved. plural and diverse approaches, the relevance of strat-
egy knowledge to practice is increasingly questioned
Keywords: Strategy as practice, Strategy know- (Baldridge, Floyd and Markoczy, 2004; Bettis, 1991;
ledge, Relevance, Strategy tools, Strategy theory Ghoshal and Moran, 1996; Hafsi and Thomas, 2005;
Løwendahl and Revang, 1998). For example, practi-
tioners ‘‘are abandoning traditional approaches to strat-
egy’’ and academics ‘‘are re-examining the relevance of
q
the concepts and tools of the strategy field’’ (Prahalad
The authors wish to thank Don Maclean, Patrick Regner,
and Hamel, 1994: 5). This concern about strategy
Richard Whittington and Nicolay Worren for their comments
on earlier drafts of this paper, as well as participants at the knowledge is part of wider concern on whether orga-
Academy of Management Conference, 2004, where an abridged nization theory is actionable in practice (see, for
version of this paper appeared in the Conference Proceedings. example, Academy of Management Conference,

348 European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

2004; Academy of Management Journal, 2001, 44.2; may be better explained if we take a practice
Administrative Science Quarterly, 1982, 27.4; British perspective.
Journal of Management, 2001; Maclean and Macin-
tosh, 2002; Pettigrew, 1996; Tranfield and Starkey, The paper is in three sections. First, many of the con-
1998). As a key part of organization theory, strategy cerns about the practical application of strategy the-
has been the target of further criticisms which argue ory are based upon the evolving nature of theory
that theory fails to keep pace with the changing com- as competitive conditions change due to globaliza-
petitive conditions of a ‘knowledge economy’ – glob- tion, deregulation, technology and increased innova-
alization, deregulation, technology and increased tion (Prahalad and Hamel, 1994; Løwendahl and
rates of innovation (Chakravarthy, 1997; Courtney, Revang, 1998; Venkatraman and Subramaniam,
Kirkland and Viguerie, 1997; Eisenhardt, 2002; Prah- 2001). These changed competitive conditions are var-
alad and Hamel, 1994; Venkatraman and Subraman- iously termed ‘post-industrial society’ (Løwendahl
iam, 2001). and Revang, 1998), the ‘new economy’ (Coyle and
Quah, 2002; Eisenhardt, 2002), or the ‘knowledge
This paper argues that the simple dichotomy economy’ (Kim and Mauborgne, 1999). As the latter
between theory and practice is insufficient to capture term ‘knowledge economy’ is a persistent descrip-
the richness of interplay (or lack of interplay) tor 1, it will be used in this paper. The first part of this
between the two. Adopting a practice perspective, paper outlines the major changing competitive con-
we propose that the relationship between theory ditions that are argued to influence whether knowl-
and practice involves a process of dissociation in edge is actionable in a knowledge economy,
which current questions about actionable strategy environmental velocity and knowledge intensity,
knowledge may be misleading. For example, theo- and assesses how strategy theory has adapted (or
rists argue that changing competitive conditions failed to adapt). Taking four key schools of thought
have rendered traditional strategy knowledge largely in strategy (positioning; resource based; hypercom-
irrelevant. Such theoretical arguments claim that petitive and complexity theory) we mirror each
practitioners need new and emerging theories of against the changing competitive conditions. There
strategy that are better adapted to competitive condi- is evidence of theoretical development as some
tions to guide strategy practice. This paper examines approaches become increasingly relevant and vice
these arguments, proposing that even where they versa. Therefore, there is some support for the argu-
hold true, practitioners do not apply theory directly. ment that some schools of strategy theory may be
Instead, they use tools and frameworks developed less actionable than others. However, the second part
from a wide range of organizational research. Fur- of the paper raises questions over the direct applica-
thermore, in practice such frameworks may be tion of these theories by practitioners.
adapted and modified by practitioners/strategists
to suit their own, rather than intended theoretical, In the second part of this paper we argue that theo-
ends. We therefore develop the concept of dissocia- retical knowledge goes through a process of dissoci-
tions between strategy theory and its use in practice, ation, which means it is rarely disseminated directly
building upon Weick’s (1995) proposition that theory into practice as ‘theory’. Rather, theoretical knowl-
interacts better with its prescription by receiving edge is simplified into ‘knowledge artifacts’, such
feedback. We argue that the use of theories in prac- as tools, techniques, and frameworks (Furrer and
tice is more complex than an examination of the Thomas, 2000). The dissociation from theoretical
extent of their direct application. An examination of knowledge to knowledge artifacts is important in
practice, therefore, rather than theorizing about prac- understanding how strategy knowledge can be trans-
tice may yield insight into how theory and practice lated into practice. Knowledge artifacts include posi-
are inter-related. tioning frameworks, matrices such as the Boston Box
or environmental scanning tools such as the PESTL
analysis. These artifacts are disseminated into prac-
tice through MBA courses, strategy texts, strategy
Asking the Wrong Question: Is Theory
consultants and the popular business media (Abra-
Actionable in Practice? hamson, 1996; Barry and Elmes, 1997; Beyer and
Trice, 1982; Mazza and Alvarez, 2000; Tsoukas and
As Weick (1995) argues, theories themselves are no Knudsen, 2002). This paper therefore proposes that
more than approximations. They represent the strategy knowledge, as derived from organization
interim struggles of social scientists as they strive for and economic theory, is used in practice as knowl-
a bigger theory with a wider scope. Theory is thus edge artifacts (Linstead and Grafton-Small, 1992;
not a static concept in a dichotomous relation with Tsoukas, 1998; Worren et al., 2002), which are implic-
practice, but is a continuum ranging from guesses itly involved in the work of strategizing (Jarzabkow-
to frameworks and general principles. This paper ski, 2004; Whittington, 2003; Whittington et al., 2003).
aims to contribute to our understanding of the
relationship between theory and practice by suggest- While research provides some evidence that practi-
ing that there is a dissociation between theoretical tioners use these knowledge artifacts (e.g. Grant,
knowledge and its direct application in practice which 2003; Haspeslagh, 1982; McCabe and Narayanan,

European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006 349
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

1991; Rigby, 2001), to assume that they are used with be irrelevant due to increasingly high velocity busi-
reference to the theories from which they sprung is ness environments (D’Aveni, 1994; Eisenhardt and
erroneous. We argue that, frequently, practitioners Sull, 2001; Prahalad and Hamel, 1994) and the rise
use knowledge artifacts (tools and frameworks) of knowledge as a key source of competitive advan-
without reference to the theories from which they tage (Courtney et al., 1997; Nahapiet and Ghoshal,
originated. While the use of strategy tools is evidence 1998). This paper therefore draws together the vari-
that practitioners find them actionable, there is a dis- ous challenges for the application of strategy theory
crepancy between how theorists and practitioners in a knowledge economy into two key contextual
define and assess the relevance of theory (Baldridge conditions, environmental velocity and knowledge inten-
et al., 2004; Hafsi and Thomas, 2005; Maclean and sity. The first condition, environmental velocity, is
Macintosh, 2002). This discrepancy is located within essentially a characteristic of industry structure,
the dissociation between theory and practice, which while the second, knowledge intensity, is more a
undergoes a further phase when theoretical knowl- characteristic of firm behavior. While they are not
edge artifacts, such as tools and frameworks are mutually exclusive conditions, each has specific
applied in practice. implications for the practical relevance of some
schools of strategy theory over others. As such they
The third section of this paper addresses the relation- constitute important contextual conditions with
ship between theory and practice by proposing a which to formulate falsifiable propositions about
practice epistemology for understanding strategy the practical validity of strategy theory in a knowl-
knowledge in action (Cook and Brown, 1999; edge economy (Bacharach, 1989; Priem and Butler,
de Certeau, 1984). It looks at what practitioners do 2001; Whetten, 1989). This section of the paper exam-
when they apply strategy frameworks. From this ines these contextual conditions as a theoretical basis
practice perspective, the use of strategy knowledge for analyzing the extent to which different schools of
and knowledge artifacts is grounded in the bricolage strategy knowledge remain actionable.
involved in everyday strategizing practice (Chia,
2004; Jarzabkowski, 2004; Tsoukas and Knudsen, In a knowledge economy, globalization, deregulation
2002; Whittington, 2002; 2003; Wilson and Jarzabkow- and technological diffusion are posited to increase the
ski, 2004). Bricolage is the practical use of theoretical speed, complexity, dynamism and turbulence of the
artifacts in creative and adaptive ways that have little environment, with consequences for the tasks and
to do with their theoretical origins (see Baker, Miner tools of strategy (Eisenhardt, 2002; Prahalad and
and Eesley 2003, de Certeau, 1984; Levi-Strauss, Hamel, 1994). These environmental changes may be
1966). In the bricolage of practical application, strat- subsumed under an overarching contextual condi-
egy knowledge goes through another dissociation tion, environmental velocity, which captures their
from theory. We therefore argue that current con- essential elements. High velocity environments are
cerns about the actionable nature of strategy knowl- characterized by ambiguous industry structure,
edge are grounded in representationalist, rational blurred boundaries, fluid business models, ambigu-
choice perspectives (Rorty, 1991; Tsoukas, 1998; Tso- ous and shifting market players and non-linear and
ukas and Knudsen, 2002), which marginalize both unpredictable change (Eisenhardt and Martin, 2000).
the knowledge artifacts arising from theory and the Ambiguity of industry structure and shifting industry
uses of these artifacts in practice. A practice perspec- players arise from declining barriers to entry, more
tive moves us beyond linear, representationalist con- frequent entry and exit, and high variance in firm per-
cepts of actionable knowledge to considering both the formance within a single industry; that is bombs and
practical uses of knowledge and how these uses stars (D’Aveni, 1994; Thomas, 1996). Commensurate
might inform our design of theory. The paper con- with these changes in industry structure, boundaries
cludes by suggesting that while the context of a between industries and, therefore, between firms are
knowledge economy is relevant for assessing the blurred, as evidenced in the convergence between
potential relevance of strategy knowledge, we need telecommunications, media and technology, leading
also to study systematically how knowledge artifacts to fluid business models and changing industry con-
are used in the everyday practice of strategy. stellations and clusters within the value chain (Cha-
kravarthy, 1997; Eisenhardt and Sull, 2001). In such
environments change in competition, demand and
technology is rapid and information is often inaccu-
Contextual Conditions for Actionable
rate, unavailable or obsolete (D’Aveni, 1994; Eisen-
Strategy Theory hardt and Bourgeois, 1988). Environmental velocity
implications for the relevance of strategy theory are
Contextual conditions establish the parameters thus primarily structural considerations but they also
under which a theory may be considered valid or indicate changing approaches to the nature of knowl-
false (Bacharach, 1989; King et al., 1994; Popper, edge and information.
1968; Whetten, 1989). They identify the contingencies
under which bodies of strategy knowledge may be In a knowledge economy, knowledge is an important
more or less actionable (Priem and Butler, 2001). In source of competitive advantage. While the nature of
a knowledge economy, existing theory is posited to knowledge has multiple definitions that are beyond

350 European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

the scope of this paper (see Eisenhardt and Santos, systems. Hence, new streams of research have arisen,
2001), an overarching explanation is provided as a such as high velocity, hypercompetitive theories and
basis for discussing the implications of knowledge complex ecosystem theories (Brown and Eisenhardt,
intensity to strategy theory in practice. Knowledge 1997; D’Aveni, 1994; Levy, 1994; Pascale, 1999; Stacey,
intensity may be identified by input measures, such 1995).
as R&D investment and output measures, such as
product innovation and patent registration. Addi- The selection of these four approaches as important
tionally, within-firm measures may be used, such but distinct bodies of strategy theory is strengthened
as the appropriation of new technologies for process by their inclusion in many existing taxonomies of
efficiency, process innovation and knowledge trans- strategy research. For example, Lengnick-Hall and
fer and the percentage of skilled or ‘white-collar’ Wolff (1999) compare the similarities and contradic-
labor (Coyle and Quah, 2002). However such mea- tions of the latter three; capability building, high
sures tend to overlook the social complexity of velocity, and ecosystem theories, finding them to be
knowledge intensive environments, such as the three distinct bodies of knowledge with different
importance of external and internal knowledge net- core logics of competitive advantage. Their taxon-
works. For example, firms increasingly need to incor- omy, however, is limited in failing to address the
porate the consumer into their value chain as a industrial economics legacy, which is considered an
source of knowledge (Løwendahl and Revang, earlier body of strategy theory with a distinct logic
1998), to develop a portfolio of intra-organizational from, for example, resource-based views of competi-
relationships to build social and intellectual capital tive advantage (Conner, 1991; Venkatraman and
(Nahapiet and Ghoshal, 1998), and to include middle Subramaniam, 2001). Therefore, this paper draws
and lower-level employees in their strategy making upon Mintzberg et al.’s (1998) positioning school as
as valuable knowledge workers (Nonaka and Takeu- a synthesis of the most common industrial economics
chi, 1995). Knowledge-intensity is thus the degree to artifacts that provide concepts, tools and techniques
which a firm is dependent upon the knowledge gen- to strategy theory. The purpose of this section of
eration inherent in its activities and outputs, which the paper is to flesh out criticisms of strategy theory
may include both subjective and social knowledge by examining the extent to which each school of
bases as well as objective, codified and explicit research may be considered actionable under the
knowledge bases. The key implication is that knowl- contextual conditions of a knowledge economy.
edge intensity constitutes both a source of uncer-
tainty and also of competitive advantage for firms.
It is thus related to, but distinct from, environmental
velocity, being more a characteristic of firm behavior Positioning School Theory
than of industry structure.
The positioning school is founded on the industrial
A key question then becomes how do existing theo- economics structure-conduct-performance para-
ries of organizational strategy match up against these digm. From this perspective, an attractive and profit-
contextual conditions of environmental velocity and able industry is one where a firm can find a stable
knowledge intensity? We now explore this question. and defensible position in order to avoid competition
and so earn superior rents (Porter, 1979). Competi-
tion is undesirable because it destroys profitability
for all players. Hence, firms erect barriers to entry
Theories of Organizational Strategy
to attain defensible positions and tacitly collude to
in Context avoid competition by finding different positions
within an industry. This perspective has an underly-
Four different schools of strategy theory are chosen for ing principle of stability, since sustainable advantage
this analysis; the positioning school, capability-build- may be derived from positioning on given assets
ing theory, high velocity strategy and complex eco- (Conner, 1991; Thomas, 1996; Tsoukas and Knudsen,
system theories. These four theoretical approaches 2002).
have been chosen because they are prominent bodies
of strategy research tracing developments within the The relevance of the positioning school has come
field over the past 30–40 years. The positioning school under fierce criticisms, based primarily upon the con-
is an ‘outside-in’ approach, derived largely from textual condition of environmental velocity. These
industrial economics and focusing on firm positioning criticisms take three main stances; that assumptions
within the environment, and the capability school is of stasis have lost relevance, that industry structure
an ‘inside-out’ approach which examines competitive is ambiguous, and finally that competition drives
advantage as a function of internal resources and rather than destroys value. First the assumptions of
capability building (Conner, 1991; Lengnick-Hall stasis in the positioning school are seen as irrelevant
and Wolff, 1999; Mintzberg et al., 1998; de Wit and under high velocity because, as environments move
Meyer, 1998). In recent years both these schools have faster, the stable assets that created barriers to entry
been found inadequate to explain strategy in high and defensible positions are eroded. In such environ-
velocity environments or in complex interconnected ments there is rapid entry and exit of players as

European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006 351
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

opposed to an oligopoly of largely stable players, so valuable, rare, inimitable and non-substitutable
that the incentives for ‘gentlemanly agreements’ to resources and competences that may be leveraged
collude are swept aside (Chakravarthy, 1997; to generate superior and sustainable rents (Barney,
D’Aveni, 1994). Secondly, industry structure is ambig- 1991). To this extent, there are some similarities to
uous under high velocity conditions, such that buyers, the positioning school since superior rents are
suppliers, potential entrants and substitutes and even derived from barriers to entry (Conner, 1991). How-
rivals cannot be easily determined. For example, if ever, in capability-building theory these barriers are
competition is based on the creation of new, as yet erected by firm-specific choices about internal orga-
unanticipated customer need, neither buyers nor sub- nization that, being socially complex and path-
stitutes can be clearly identified (Bogner and Barr, dependent, are non-imitable. This body of theory
2000; D’Aveni, 1994). Hence industry analyses and has an inherent assumption of relatively stable and
the development of differentiated positions become long-lasting competitive advantage, in which the
obsolete. Finally, the value of competition itself is resource or competence base may be gradually
under question in a high velocity environment. While evolved and leveraged over time (Lengnick-Hall
the positioning school is based on Bain-type industrial and Wolff, 1999; Venkatraman and Subramaniam,
economics that suggests competition destroys value, 2001). Furthermore, it involves an essentially stable
from a Schumpeterian perspective the increased com- view of competition, since other firms are assumed
petition in high velocity environments drives value to be pursuing relatively consistent courses, such that
creation (Conner, 1991; Thomas, 1996). For example, the firm with a superior resource or competence base
the challenge of rivalry drives innovation, such as can benchmark against the competitor and so gain
speed in developing new products, services or pro- advantage (Chakravarthy, 1997).
cesses, and so generates value, while, conversely, tacit
collusion to avoid competition destroys value (Bogner Capability-building theory has come under criticism
and Barr, 2000; Thomas, 1996). within high velocity environments, primarily because
of its path-dependent and evolutionary character.
These three criticisms suggest that positioning school These characteristics predispose inherent rigidities
theory is not actionable in high velocity environ- and competency traps that prevent a firm from
ments and may even, in the final criticism, be detri- embracing swift, radical and repeated change (Cohen
mental to value creation. This final point leads to and Levinthal, 1990; Lengnick-Hall and Wolff, 1999;
another, less articulated criticism of the positioning Leonard-Barton, 1992). Hence the core basis of com-
school in terms of its relevance in knowledge inten- petitive advantage under capability-building theory
sive conditions. While knowledge-intensive environ- is best suited to lower environmental velocity (Cha-
ments could potentially be characterized by relative kravarthy, 1997). Early forms of RBV have also been
stability and definable industry structure, the propo- criticized for their static, codified and non-generative
sition that high velocity environments drive speed of views of knowledge, which are not applicable in
innovation suggests that positioning school logic will a knowledge-intensive environment (Scarbrough,
also be practically limiting in knowledge intensive 1998; Spender, 1996). However, other forms such as
environments. Positioning school logic will encour- core competences, with its emphasis on tacit and
age practitioners to hoard and build upon existing intangible knowledge and innovation resources, are
knowledge assets for defensible positions, rather highly applicable to knowledge-intensive environ-
than encouraging them to embrace knowledge gener- ments (cf. Prahalad and Hamel, 1990).
ation in order to destroy existing positions and gen-
erate new ones (Thomas, 1996). The positioning In an attempt to counteract the limitations of earlier
school is thus one body of strategy knowledge that RBV, capability-building theory has been extended
is less actionable under contextual conditions of envi- to incorporate dynamic capabilities, which, while
ronmental velocity and knowledge intensity. still predicated on path, focus strongly on the learn-
ing processes by which firms reconfigure their
resources to adapt to changing environments (Helfat,
2000; Teece et al., 1997). The dynamic capability per-
Capability-building Theory spective permits some concepts from capability-
building theory to be relevant and applicable in
Capability building theory covers three main sub- higher-velocity markets. Thus, firms in high velocity
themes of strategy research; the resource based view markets may have capabilities in rapidly reconfigur-
(RBV) (Barney, 1991; Wernerfelt, 1984), core compe- ing their resources through, for example, time pacing
tences (Prahalad and Hamel, 1990) and dynamic (Brown and Eisenhardt, 1997). Similarly, a firm
capabilities (Teece et al., 1997), each of which draw might have capabilities applicable to a knowledge-
upon similar conceptual fundamentals (Lengnick- intensive environment, such as knowledge genera-
Hall and Wolff, 1999). Essentially, this body of strat- tion and transfer (Grant, 1996; Nonaka and Takeuchi
egy research views competitive advantage from the 1995). Furthermore, development of dynamic capa-
perspective of a firm’s superior resources, compe- bilities might reflect the interplay between high
tences and capabilities, which lead to sustainable velocity and knowledge-intensive contexts, in which
competitive advantage. Successful firms develop speed of change drives capabilities in the rapid

352 European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

creation of situation-specific knowledge (Eisenhardt Additionally, a knowledge-intensive firm may have


and Martin, 2000). greater learning capacity and so be more able to adapt
to a rapidly changing environment (Autio et al., 2000).
This flexibility that has been introduced to capability- While knowledge may be an important source of
building theory is further evidence of the contingent advantage under high velocity environments, this
relationships between contextual conditions and the does not infer conflation of velocity and knowledge
application of strategy knowledge, such as resource- intensity. Rather, knowledge becomes a source of
based theory (cf. Miller and Shamsie, 1996). Thus, value in high velocity environments because of the
dynamic capabilities are seen as processes to manipu- speed with which it may be mobilized or its innova-
late resource configurations according to the environ- tive outputs realized. Therefore, inimitability, which
mental conditions in which they are used (Eisenhardt is a key source of knowledge-based advantages in
and Martin, 2000:1118). In moderate velocity environ- more stable environments, becomes obsolete (Autio
ments, dynamic capabilities retain the evolutionary et al., 2000; D’Aveni, 1994; Lengnick-Hall and Wolff,
and long lasting sustainability premises of the 1999). The primary source of advantage is not build
resource-based view. For example, a firm is able to up of inimitable long-term knowledge but using
evolve capabilities over time and use these to develop knowledge for rapid reconfiguration in order to gen-
a path dependent and inimitable base of long-term erate new advantages. High velocity theory is thus
competitive advantage. In higher velocity environ- primarily actionable in high velocity environments
ments, dynamic capabilities will be used to build but may also have application under conditions of
rapid new resource configurations and in knowledge rapidly changing knowledge demands.
intensive environments a firm will develop strong
knowledge-based resources and competences (Eisen-
hardt and Martin, 2000; Miller and Shamsie, 1996).
The two conditions thus contextualize the application Ecosystem, Complexity Theory
of particular types of capability building theory.
A recent stream of strategy research, drawing upon
business ecosystems, complexity theory and chaos
theory, develops a perspective on competitive
Hypercompetitive or High Velocity Theory advantage arising from a firm’s position within a
complex ecosystem (Lengnick-Hall and Wolff,
As existing strategy theory was found inadequate to 1999). This perspective deals with the uncertain,
explain strategy in high velocity environments, a non-linear and emergent nature of strategy within
new body of theory arose around hypercompetitive an interconnected but widely dispersed system of
or high velocity strategy. High velocity strategy is positive and negative feedback loops (Stacey, 1995).
characterized by rapid innovations, short product Drawing on the biological evolution of ecosystems,
lifecycles, new technologies, unexpected new such research emphasizes the interdependence, sym-
entrants, and continuous repositioning of players biosis, and co-evolution of different actors within a
within the industry (D’Aveni, 1994; Eisenhardt and system (Eisenhardt and Galunic, 2000; Levinthal
Martin, 2000). Since any advantage is temporary, and Warglien, 1999; Moore, 1993). Since firms exist
the generation of defensible positions or sustainable within an ecosystem comprising other firms, institu-
resources is not possible. In this school of strategy tions and actors, even minor actions in one part of
research, competitive advantage is based upon a the system have consequences for other parts of the
guerrilla logic of continuously disrupting current system. The system evolves in a continual process
positions and strategies in order to generate new of self-organization of contradictory forces of posi-
areas of advantage (Lengnick-Hall and Wolff, 1999). tive and negative feedback and stability and instabil-
A firm must compete by resorting to tools and tactics ity. Such self-organization predisposes continuously
associated with speed, surprise, innovation and adaptive and emergent patterns of activity.
flexibility.
The complexity and non-linear adaptation of such
While high velocity research has been conducted to systems inhibits long-term forecasting. However, as
generate knowledge about strategy in high velocity adaptation is generally evolutionary, comprehension
environments, it also indicates links between velocity of systemic patterns and short-term forecasting is
and knowledge-intensity. The techniques that create possible (Levy, 1994). This aspect of ecosystem the-
advantage under velocity are frequently associated ory has implications for its application under high
with the generation and exploitation of knowledge velocity contextual conditions. Since the system is
(Eisenhardt and Martin, 2000; Miller and Shamsie, continuously evolving, it is not low velocity but nei-
1996). For example, a firm with a strong knowledge ther can it be considered high velocity. Indeed, the
base may be able to mobilize that knowledge in the contradictory self-organizing feedback loops in com-
pursuit of new strategies, particularly where knowl- plexity theory are resistant to the continuously dis-
edge is explicit technical knowledge that is inherently ruptive instability that is inherent in high velocity
mobile across a range of activities (Liebeskind, 1996). theory. From a complex adaptive system perspective,

European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006 353
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

hypercompetition and high velocity logic is innately while the horizontal axis deals with knowledge
destructive to a system because it focuses excessively intensity 2. The positioning school has low relevance
on positive feedback loops (Zohar and Morgan, under each condition and so is placed in quadrant A,
1996). An industry may show hypercompetitive as are early forms of capability-building theory.
shifts, similar to the punctuated equilibrium associ- However, capability-building theory has been
ated with radical change in biological systems (Bein- extended recently to incorporate more knowledge-
hocker, 1999; Levy, 1994), but generally change is intensive and dynamic forms of resource and compe-
adaptive and evolutionary. Hence, some stability of tence configuration. Hence, it appears in quadrants
competitive advantage may be forecast and attained B and C as well, in accordance with the specific
for short periods, particularly where the firm exists capabilities applicable under each contextual condi-
within a healthy ecosystem (Arthur, 1996; Moore, tion. Complex ecosystem theory is firmly within
1993). Healthy ecosystems are those with more quadrant B but encroaching into quadrant D as it is
connections, in which actors are more sensitized to primarily implicated in knowledge-intensive condi-
each other and so able to adapt continuously (Leng- tions but operates under moderate velocity. As high
nick-Hall and Wolff, 1999). However, these wide- velocity theory is primarily related to speed of
spread connections also increase complexity and response in high velocity environments, it is posi-
lessen agility in high velocity markets (Eisenhardt tioned in quadrant C. However, high velocity theory
and Galunic, 2000: 97), thus moderate velocity is an indicates some interdependence between environ-
applicable contextual condition for complex ecosys- mental velocity and the knowledge capacity of the
tem theory. firm. Therefore, it is partially within quadrant D.
While no body of theory applies specifically to both
Knowledge intensity, on the other hand, is an impor- contextual conditions, increasingly high velocity the-
tant contextual condition increasing the relevance of ory and some forms of capability-building theory
complex ecosystem theory. While the other three the- indicate a relationship between the two, hence
oretical approaches are, fundamentally, based on an arrows suggest movement within a knowledge econ-
assumption of competitive advantage as ‘winner- omy towards theory that can meet both contextual
takes-all’, in an ecosystem, integrity of the whole conditions.
system is vital to successful strategic activity (Leng-
nick-Hall and Wolff, 1999; Moore, 1993). Winner- Figure 1 is a helpful schema for furthering a research
takes-all is comparable to a dominant and predatory agenda into actionable strategy knowledge. Extant
species in a biological ecosystem that eliminates criticisms of strategy theory as not actionable in prac-
other viable forms. This is destructive to the requisite tice are based on the need for theory to evolve in line
diversity of the system and so, ultimately, to the with the changing competitive conditions of a knowl-
dominant species (Pascale, 1999). In a business eco- edge economy. The above discussion, which is sche-
system, maintaining widespread and collaborative matically drawn together in Figure 1, indicates that
connections across traditional industry boundaries these criticisms have some foundation and, therefore,
and competitors constitutes systemic attractors that have serious implications for some schools of theory.
create favorable conditions for the system as a whole. It is increasingly difficult to find low velocity and
Hence, the relationship with knowledge is different low knowledge intensity sectors that fit within quad-
to the other theoretical approaches. Knowledge is rant A (cf. Løwendahl and Revang, 1998). Even mass
no longer either an inimitable source of competitive production industries or those based on raw materi-
advantage or the basis for disrupting the competitive als face increasing demands for speed and reduced
advantage of competitors. Rather, knowledge is an cycle time due to the pull from more complex indus-
important systemic property that should be shared tries with greater consumer interface further up their
in order to enhance the interconnectedness and supply chain. For example, automobile components
health of the system. This suggests a collaborative manufacturers face increasing knowledge demands
and co-evolutionary approach to competition, in which in product and process innovations facilitated by
it is important to incorporate the customer, the sup- supply chain integration and knowledge transfers
plier, the employee and even the competitor, into from more knowledge intensive industries further
the knowledge chain (Eisenhardt and Galunic, 2000). up their value chain. Thus, for the majority of indus-
The greater the knowledge demands on the system, tries in the current competitive climate, some schools
the more that shared knowledge will constitute an of strategy theory, particularly the positioning school
attractor to the system (Levy, 1994; Stacey, 1995). and early RBV, are losing relevance. These theories
Complex ecosystem theory is thus highly applicable are, therefore, less actionable under changing com-
under knowledge-intensive contextual conditions. petitive conditions, as some critics suggest (Chakra-
varthy, 1997; Courtney et al., 1997; Prahalad and
Table 1 summarizes the core logic of each school of Hamel, 1994). Environmental velocity and knowl-
strategy knowledge and its relevance under contex- edge intensity, thus provide empirical parameters
tual conditions of environmental velocity or knowl- to contextualize the actionability of strategy knowl-
edge intensity. Each school is then positioned edge, which, despite widespread criticisms, remains
relative to the others on a matrix in Figure 1, in which to be systematically subject to empirical scrutiny
the vertical axis represents environmental velocity, (Baldridge et al., 2004).

354 European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

Table 1 Core Logics and Contextual Conditions of Streams of Strategy Theory

Core logica Contextual conditions

Positioning logic
 Find a stable and defensible position where it is  Low environmental velocity (EV)
possible to earn superior rents  Low knowledge intensity (KI)
 Erect barriers to entry
 Tacitly collude to avoid direct competition

Capability-building logic
 Unique resources can be leveraged for sustainable advantage  Low EV for early RBV and competences
 Competition is relatively stable, permitting superior resource  Low KI for early RBV
combinations to be exploited long-term  High KI for core competences, knowledge-based
 Path-dependence is an inimitable source of competitive advantage view and learning aspect of dynamic capabilities
 High EV for capabilities in speedy resource
reconfiguration

High-velocity/hypercompetition logic
 Any advantage is temporary  Primarily high EV conditions
 Continuous disruption is the key to competitive advantage  Associated with KI due to knowledge involved in
 Speed in reconfiguring resources and products is vital developing new products and the technologies
involved in speed of resource reconfiguration.

Complexity logic
 Strategy in a complex ecosystem of positive and negative  Moderate EV due to continuously changing
feedback loops is uncertain, non-linear and emergent environment
 Interdependence, symbiosis, co-evolution and requisite  High KI due to interdependence within ecosystem
diversity increase the health of a business ecosystem
 Healthy ecosystems are key to competitive advantage
in an uncertain and unstable world
a
These are summaries of more extensive treatments on the core logics of each stream of strategy theory. For more extensive
explanations, contrasts and comparisons between each stream see Chakravarthy (1997), Conner (1991), Lengnick-Hall and Wolff
(1999), Mintzberg et al (1998) and Venkatraman and Subramaniam (2001).

Strategy Knowledge and Knowledge able strategy knowledge, it does not get to grips with
Artifacts knowledge artifacts; those tools, techniques and
frameworks arising from bodies of theory. Yet this
paper argues that these are the knowledge artifacts
While the discussion in the first section is helpful in that strategy research provides to managers in prac-
providing a theoretical basis for examining action- tice (Bowman et al., 2002; Furrer and Thomas, 2000;
Rumelt et al., 1991; Thomas, 1984; Thomas and
Pollock, 1999). For example, many empirical studies
HIGH of the application of strategy knowledge have exam-
C High Velocity theory D ined strategy tools and frameworks as the typical
unit of analysis (e.g. Armstrong and Brodie, 1994;
Capability-building: Hambrick et al., 1982; Haspeslagh, 1982; McCabe
Speed in resource
reconfiguration and Narayanan, 1991; Miller and Friesen, 1986a;
1986b; Shrivastava, 1987; Wensley, 1982). These tools
Environmental Velocity

and frameworks may, therefore, be considered the


LOW Knowledge Intensity HIGH
Complex ecosystem theory knowledge artifacts arising from strategy research
(Jarzabkowski, 2004; Linstead and Grafton-Small,
Capability-building:
Early RBV &
1992; Tsoukas, 1998; Tsoukas and Knudsen, 2002;
Capability-building:
competences knowledge based resources
Whittington, 2003; Worren et al., 2002). Such
Positioning School & competences knowledge artifacts find their way into practice
B through the teaching of business schools, their incor-
A
LOW
poration in strategy texts, their use by consultants,
and their dissemination in the business media
Figure 1 Contextual Conditions for Four Streams of (Abrahamson, 1996; Astley and Zammuto, 1992;
Strategy Theory Barry and Elmes, 1997; Mazza and Alvarez, 2000;

European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006 355
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

Tsoukas and Knudsen, 2002; Whittington et al., 2003). petences and competitive advantage (for example,
These artifacts are thus the actionable forms of Grant, 2002). Table 2 provides a categorization of
knowledge that strategy research provides to prac- the key concepts and frameworks arising from capa-
tice. If we wish to understand actionable strategy bility-building theory and a sample of their sche-
knowledge we must look not only to the theories matic depiction in key strategy texts.
available for use but also, and more pertinently, to
whether the artifacts arising from these theories are The set of artifacts arising from high velocity research
actionable. This section builds upon existing taxono- are also more conceptually and ambiguously
mies of the above four streams of strategy knowledge expressed than in the positioning school. For example,
by identifying their associated artifacts; that is, their D’Aveni (1995:48) proposes a 7S framework for hyper-
tools and frameworks. This categorization is by no competitive conditions that he emphasizes are not
means exhaustive but serves to illustrate some of ‘‘generic strategies or a recipe for success’’ but, rather,
the more common forms of knowledge artifact that ‘‘key approaches . . . to carry the firm in many different
theory has provided to practice. The paper then directions’’. Similarly, Eisenhardt and Sull (2001) advo-
briefly examines empirical evidence on the uses of cate strategizing by simple rules in high velocity envi-
these artifacts in light of the above contextual condi- ronments, in order to retain sufficient flexibility to
tions for actionable strategy knowledge, proposing make rapid decisions. However, such frameworks
that the development of knowledge artifacts is the are not prescriptive since the actual content of the
first phase in a process of dissociation between the- rules varies greatly according to the particular firm.
ory and its application in practice. The frameworks that have arisen are primarily ori-
ented towards increasing speed in decision-making,
The positioning school is notable for its knowledge facilitating experimentation, and designing flexible
artifacts, having evolved numerous matrices and dia- organizations to aid in rapid reconfiguration of
grams that indicate the relationships between key resources (Eisenhardt and Brown, 1999; Volberda,
variables, and which are evergreen in our strategy 1996). Additionally, some frameworks have been pro-
textbooks and courses (Mintzberg et al., 1998). This posed as aids to assist practitioners with decision-
proliferation may be partially accounted for by the making under conditions where industry structure is
microeconomic traditions underpinning the position- ambiguous and the potential value and uptake of
ing school, which are characterized by deductive, new products and technologies is unknown. For
analytic and predictive modes and methods of example, real options (Bowman and Hurry, 1993) is
research that have a tendency towards ‘‘clean’’ and a decision-making tool that permits managers to
parsimonious models for expressing theory (Hirsch experiment with a range of possible strategic options
et al., 1987). Michael Porter (1980; 1985) is the pri- whilst retaining the ability to exit at relatively low cost
mary exponent of the positioning school. The main from markets that fail, or to push market evolution in
artifacts arising from this body of theorizing are Por- favor of their existing options (McGrath, 1997; Miller
ter’s 5 forces and the generic strategy model (GSM). and Waller, 2003). Market disruption analysis encour-
However, there are a number of complementary ages practitioners to anticipate potential disruptive
models that also belong within the general family technologies and unexpected entrants (Bower and
of the positioning school, since they are based on bar- Christiansen, 1995), while the delta model is designed
riers to entry, market share, and the attainment of to help managers capitalize on the potential network
defensible and differentiated positions. For example, effects of a disruptive technology (Hax and Wilde,
the experience curve, the PIMS database, the BCG 1999). Table 2 outlines some key tools associated with
portfolio matrix and strategic groups (Bowman high velocity strategy research.
et al., 2002; Furrer and Thomas, 2000; Mintzberg
et al., 1998; Rumelt et al., 1991; Venkatraman and Complex ecosystem theory has generated few con-
Subramaniam, 2001). Table 2 categorizes the main crete strategy tools and frameworks for managers
tools and frameworks that are broadly attributable to use, perhaps because strategy is emergent and
to the positioning school. non-linear in such systems. However, guidelines for
managerial influence involve facilitating a within-
Capability-building theory has spawned fewer tools firm and extra-firm context in which the system
and frameworks than the positioning school, particu- may achieve its own self-organizing interconnec-
larly in terms of parsimoniously expressed models tions. Strategizing tools and frameworks are thus
for capturing its approach to competitive advantage. centered on shaping the system architecture to
This may be because it is conceptually, ambiguously acknowledge co-existent tensions and so trigger rela-
and subjectively expressed in terms of what consti- tionships between parts of the system. For example,
tutes a resource or competence (Priem and Butler, managers may use organizational design tools to
2001). Hence, such knowledge lends itself less to con- encourage knowledge-sharing processes (Levinthal
crete knowledge artifacts such as matrices and more and Warglien, 1999). Performance and accounting
to knowledge as a framework of concepts (Astley metrics and reward systems can encourage the
and Zammuto, 1992). Nonetheless, most strategy trade-offs and tensions of both within firm collabora-
textbooks contain various diagrammatic schemata tion and competition in order to capture co-existent
illustrating the relationships between resources, com- competing markets (Beinhocker, 1999; Eisenhardt

356 European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

Table 2 Tools, Techniques and Artifacts Associated with Streams of Theory

Theory Tools, techniques and artifacts

Positioning school  BCG portfolio matrix (Henderson, 1979)


 Experience curve (Henderson, 1979)
 Game theory toolsa (Von neumannn and Morgenstern, 1944)
 PIMS (Buzzell et al., 1975)
 Porter’s 5 forces (Porter, 1980)
 Porter’s generic strategy model (GSM) (Porter, 1985)
 Strategic groups (McGee and Thomas, 1986)
 Value chainb (Porter, 1985)

Capability-building  Core competences (Prahalad and Hamel, 1990)


schoolc  Dynamic capabilities (Teece et al, 1997)
 Knowledge management (Nonaka and Takeuchi, 1995)
 RBV: Valuable, rare, inimitable and non-substitutable (Barney, 1991)
 Value chain (Porter, 1985)
 Sample of textbook schemata:
 Resources, capabilities and rents (Grant, 2002:153)
 Resources, competence & strategic capability (Johnson and Scholes, 2002: 146)

High velocity school  Cycle-time reduction (Stalk, 1988)


 7S Disruption: speed, surprise, shifting the rules, simultaneous and sequential thrust,
signaling, strategic soothsaying, and stakeholder satisfaction (D’Aveni, 1994)
 Market disruption analysis (Bower and Christensen, 1995; Rigby, 2003)
 Patching – flexible & modular organizational design for rapid entry and exit of markets
(Eisenhardt and Brown, 1999)
 Real options to negotiate favourable environments (McGrath, 1997)d
 Simple rules to facilitate speed and flexibility (Eisenhardt and Sull, 2001)e
 Time-pacing (Eisenhardt and Brown, 1998; Stalk, 1988)
 Delta model (Hax and Wilde, 1999)

Complex ecosystem  Co-evolution (Eisenhardt and Galunic, 2000)


school  Knowledge management tools
 Managing the system architecture (modular design, reward systems, team processes,
strategic language) to ensure diversity and increase within-firm and extra-firm
interactions (Eisenhardt and Galunic, 2000; Moore, 1993; Nahapiet, 2001;
Pascale, 1999; Stacey, 1995)
 Porter’s diamond (1990) explains ecosystem competitive advantage as complex interactions
between co-evolutionary pockets (McKelvey, 1999; Thomas, 1996)
 Real options and multiple scenarios to capture emergent learning in complex conditions
(Bowman and Hurry, 1993; Copeland and Keenan, 1998; Luehrmann, 1998; Miller and
Waller, 2003)
 Simple rules to condition system interactions (Eisenhardt and Sull, 2001; Macintosh and
Maclean, 1999; Sanchez 1997)
 Supply chain integration and simplification (Levy, 1994; Harvard Management Update, 1999;
Whiting, 2001)

a
Tsoukas and Knudsen (2001) discuss modern game theory as sequential static games, while Lampel (in Mintzberg et al., 1998:110-
111) and Furrer and Thomas (2000) note that game theory is only useful for simple, low complexity questions.
b
Mintzberg, et al (1998) place the value chain within the positioning school because of its focus on generating distinctive positions.
However, as many textbooks place it within the capability-building school, it is placed in both in this paper.
c
While the capability-building school has provided few ‘models’, the conceptual frameworks of this sample of key theorists have been
translated in practitioner-oriented journals, such as Harvard Business Review, Long Range Planning and McKinsey Quarterly. A
sample of pictorial schemata from strategy texts is provided.
d
While real options theory is not specific to either high velocity or complex ecosystem theory, it is posited as a tool for strategic
decision-making under uncertainty, taking two relevant forms here: First, for negotiating favourable environments under volatility
and uncertainty, which corresponds with high velocity logic; and second for capturing emergent learning in complex environments,
particularly in conjunction with multiple scenarios, which corresponds with complex ecosystem logic. Hence, real options is placed
in both tool sets.
e
While simple rules are primarily a technique for complex adaptive systems, these authors recommend it as a technique for speed
and flexibility in fast-moving markets.

European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006 357
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

and Galunic, 2000; Levinthal and Warglien, 1999). that ‘‘tools, techniques and methods suggested by
Some managerial discretion over the system exists approaches within the same core logic could be effectively
in terms of predisposing the architecture towards blended to develop a customized strategy that is not only
stability or instability. Stability is engendered by sim- robust but also quite unique’’. Hypothetically, action-
plification of the procedures of interaction (Levy, able strategy knowledge would involve the use of
1994; Stacey, 1995), which is the basis of complex- theoretically coherent knowledge artifacts that are
ity-based computer simulations to improve logistics applicable to the contextual conditions of the firm
or increase supply chain integration (Harvard Man- (Furrer and Thomas, 2000). However, the contextual
agement Update, 1999; McKelvey, 1999; Whiting, conditions that indicate the application of theory in
2001). These system design tools are intended to help Figures 1 and 2 also indicate overlaps in theoretical
managers to stabilize and simplify complexity. On streams. For example, if a firm is in Quadrant A,
the other hand, instability may be desirable to practitioners might apply knowledge artifacts from
stimulate emergent strategy and learning. Instability both the positioning school and the static forms of
arises from shifting the rules and webs of interac- RBV, based upon leveraging resources to attain a
tion through simple rules, modular organizational sustainable and defensible position. Therefore, prac-
design, and fostering roles that span internal and titioners might also develop a coherent strategy
external contexts (Eisenhardt and Galunic, 2000; using artifacts arising from different theories, provid-
Eisenhardt and Sull, 2001; MacIntosh and MacLean, ing that they were all consistent with the contextual
1999; Nahapiet, 2001; Pascale, 1999; Sanchez, 1997; conditions of the firm. Thus, as we examine action-
Stacey, 1995). While such tools are neither prescrip- able strategy knowledge from the perspective of
tive nor content specific, they provide rich concep- knowledge artifacts in Figure 2, there is a blurring
tual frameworks to assist management under of the theoretical distinctions found in Figure 1. As
complexity. Table 2 provides a categorization of the footnotes to Table 2 indicate, the classification
some typical tools associated with complexity strat- of artifacts into specific theoretical groups is, itself,
egy research. fraught with difficulty, being much more complex
than the grouping of the theories themselves. The
Drawing upon the categorizations in Table 2, a sec- knowledge artifacts that are disseminated into prac-
ond matrix, Figure 2, can be developed to indicate tice do not map well to their theoretical origins.
the strategy knowledge artifacts which managers
‘should’ find relevant under different contextual con- We maintain that the blurring of theoretical distinc-
ditions. Figure 2 is empirically operationalizable in tion found in Table 2 and Figure 2 is based in a pro-
terms of actionable knowledge artifacts, since empir- gressive dissociation of strategy knowledge artifacts
ical work could compile industry and firm level data from their theoretical origins, as they get closer to
on contextual conditions and correlate it with practi- practice. Theoretical tools are, by their nature, simpli-
tioner responses to the use or non-use of specific fied heuristic devices to aid thinking (Newell, Shaw
tools and frameworks. It would also be possible to and Simon, 1962; Pidd, 1996). For example, in a
analyze the coherence between the core logic of a recent interview, Porter (Argyres and McGahan,
firm’s strategy and the firm’s environment. For 2000:45–46) refers to his five forces and generic strat-
example, Lengnick-Hall and Wolff (1999: 1128) note egy models as ‘‘framework[s] . . . to capture the full rich-

HIGH
C Time - pacing D
Cycle time reduction Simple rules:
Real options D’Aveni 7 S fast decisions
Patching:Fast enter & exit
Market disruption analysis
Dynamic capabilities: speed
Value chain:
Simple rules:
Environmental Velocity

speed of transfers
trigger system
LOW Knowledge Intensity Patching: shift interaction HIGH
Co- evolution Manage
Real options & architecture
Value chain Early RBV multiple scenarios
BCG portfolio matrix Dynamic capabilities: learning
Experience curve Value/supply chain
Game theory knowledge integration
Strategic groups
Knowledge management
5 forces
Porter’s GSM Core competences
PIMS
A B
LOW

Figure 2 Contextual Conditions and Strategy Tools, Techniques and Artifacts 3

358 European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

ness of a phenomenon with the most limited number of continued use of traditional strategy tools (e.g. Rigby,
dimensions’’ in order ‘‘that managers can apply these 2001a; 2001b). Strategy knowledge artifacts are,
principles prospectively’’. This accords with the infor- therefore, actionable in practice, but not in accor-
mation processing capacity of individuals, assisting dance with the contextual conditions under which
with the practical uptake of theory by simplifying it scholars have criticized and hypothesized their
into tools and frameworks (Miller, 1956). Indeed, potential application (e.g. Courtney et al., 1997; Cha-
the diagrammatic representation of many theories, kravarthy, 1997; Furrer and Thomas, 2000; Prahalad
particularly from the positioning school with its sim- and Hamel, 1994). Does this mean that knowledge
ple and elegant frameworks, may increase the likeli- economy effects are less pervasive than expected,
hood of utility (Furrer and Thomas, 2000; Worren as some literatures suggest (McNamara et al., 2003;
et al., 2002). However modeling also represents a step Porter, 2001)? Alternately is it a reflection of the com-
in the process of dissociating knowledge artifacts plexity of diversified firms, which may have busi-
from their theoretical bases. nesses in more than one quadrant of the matrix,
such that a range of artifacts might apply? These
Let us extend this notion of dissociation by briefly explanations may well contribute to our understand-
examining research into the uses of strategy artifacts. ing of the application of strategy theory in practice.
If the criticisms of the application of strategy theory However, this paper argues that the primary reason
in a knowledge economy hold true, we should expect for the persistence of such knowledge artifacts is
to see less use of theory and, therefore, also the arti- that, in practice, they become dissociated from their
facts from quadrant A and more from the other three theoretical bases. Therefore, if we wish to understand
quadrants. The limited evidence on knowledge econ- actionable strategy knowledge, we need to examine
omy use of strategy artifacts, however, does not indi- the uses of its artifacts in practice.
cate that artifacts in quadrant A are dying off. For
example, Grant (2003) undertook a study of the
impact of turbulence on strategic planning in the
major oil companies. His turbulence construct A Practice Perspective on Knowledge
equates primarily with the environmental velocity
contextual condition but also, due to complex inter- Artifacts in Action
nal linkages, the knowledge intensity condition, plac-
ing oil companies high on the vertical axis and In this section, the criticisms of actionable strategy
moderately to the right on the horizontal axis; that knowledge discussed in section one are attributed
is, positioned between quadrants C and D of the to a representationalist epistemology on the uses of
matrix, displaying many of the contextual conditions theoretical knowledge, while the dissociation of
of a knowledge economy. While Grant did not study knowledge artifacts from their theoretical bases in
artifacts per se, they are mentioned in his discussion practice is located in a practice epistemology. The
of the strategic planning process. He did indeed find paper first critiques the representational epistemol-
evidence of new artifacts being used analytically, ogy for its rational perspective upon the use of
such as real options analysis (quadrants B and C). knowledge. An argument is then built for a practice
Capability-building artifacts such as core compe- perspective on the use of knowledge in action. Rather
tences and organizational capabilities (quadrants B than invalidating the contextual conditions under
and C) were verbalized although not used for sys- which knowledge may be actionable, a practice per-
tematic analyses. However, positioning school tools spective provides greater insight into the role of
from quadrant A, such as Porter-style industry anal- knowledge artifacts in negotiating those contextual
yses, game theory and PIMS analysis were also in conditions. The practical use of knowledge artifacts,
evidence. Concurrent with these artifacts, he found while under researched, may thus provide valuable
a shift away from the sustainability arguments of feedback into the design of actionable strategy
RBV towards a combination of long-term visioning knowledge.
and short-term financial performance management,
where trade-offs were manifest in the use of two Tsoukas and Knudsen (2002) problematize perspec-
types of tools, economic value added (EVA) focusing tives on the use of strategy knowledge as one of
on short-term targets and modified forms of multiple the epistemological relationship between strategic
scenario planning (quadrant B) to envision longer- thinking and acting. From a representational episte-
term horizons. This coincided with more decentral- mology, there is a Cartesian relationship between
ized forms of organizing (quadrants C and D) to thought and action, in which thought precedes action
facilitate speedier decision-making. Under the con- (Clegg et al., 2004; Rorty, 1991; Tsoukas, 1998;
textual conditions of the knowledge economy, oil Tsoukas and Knudsen, 2002; Varela et al., 1991).
companies have adopted knowledge artifacts in all Knowledge is designed to objectively assist this lin-
four quadrants. ear process in a prescriptive fashion. A representa-
tional epistemology sums up the proposed
Other empirical studies also find that strategy knowl- relationship between knowledge and action as;
edge artifacts are used but that this involves a varied ‘‘Action is driven by reliable prior knowledge’’ (Tsoukas
uptake of newer knowledge economy tools and the and Knudsen, 2002: 425).

European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006 359
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

From a representational epistemology, the business practical-evaluative wisdom (Chia, 2004; Emirbayer
environment contains a set of given principles. Strat- and Mische, 1998; Jarzabkowski, 2005; Tsoukas,
egy knowledge is a set of reliable and robust con- 1998; Whittington, 2003; Wilson and Jarzabkowski,
cepts that may be used to think about these 2004). Practical evaluative use of knowledge deals
principles in order to undertake well-considered with the ability to ‘get things done’ within the partic-
strategic action. Therefore, a purpose of strategy ular contingencies and demands of the here and
knowledge is to provide a set of knowledge artifacts now. In the exercise of real-time judgments, practitio-
that inform managerial thinking in an accurate way ners draw upon existing knowledge artifacts, fash-
that will assist rational, instrumental action. This per- ioning them according to situational demands. A
spective contains an implicit ‘rational economic man’ practice perspective thus involves the use of knowl-
assumption about the use of knowledge as optimiz- edge as it is adapted to the needs of any given
ing, rational choice. The criticisms of strategy theory situation.
that are examined in section one of this paper are
grounded within a representational perspective,
since they assume that knowledge will be relevant A practice perspective is particularly pertinent to
in accordance with contextual conditions. The more understanding actionable strategy knowledge. It
theoretically robust knowledge is, the more that it moves away from the linear and uni-directional con-
will have specific application to particular conditions cept of strategy knowledge inherent in the represen-
(see Baldridge et al., 2004; Schendel, 1991). Actionable tational argument. Rather, ‘‘we must see knowledge as a
strategy knowledge thus describes contextual condi- tool at the service of knowing not as something that, once
tions as an objective reality and provides a prescrip- possessed, is all that is needed to enable action or practice’’
tion for acting within that reality. Should those (Cook and Brown, 1999: 388). Strategy knowledge is
conditions change, the knowledge artifacts will cease not a reified construct that may be possessed but part
of the social practices in which strategic actors partic-
to have application and the rational strategist will
discard them. From this perspective, any practical ipate in order to communicate and construct mean-
use of strategy knowledge other than direct instru- ings about strategy, furthering their ends in ways
mental application in accordance with contextual that are intelligible to others (cf. Astley and Zamm-
conditions is regarded as a matter of deviance (Beyer uto, 1992; Barry and Elmes, 1997; Chia, 2004; Garfin-
and Trice, 1978; Merton, 1938), deliberate distortion kel, 1967; Tsoukas and Knudsen, 2002; Wenger,
(Weiss, 1979), or corruption (Louzeau et al., 2002). 1998). Hence, the practice of strategy may not
Strategy knowledge that fails to deliver on its pre- depend upon the acquisition of more knowledge
scriptions is a consequence of either the failure of but on the innovative use of existing knowledge
practitioners, who are unable or unwilling to use (Cook and Brown, 1999). Rather than requiring evo-
the knowledge adequately, or a failure of the knowl- lution in strategy theory in order to cope with chang-
ing competitive conditions, a practice perspective
edge since it is not able to have the desired effect on
practice (Louzeau et al., 2002). In this paper, how- suggests that practitioners might simply adopt exist-
ever, we maintain that practical uses of strategy ing theories and artifacts, adapting them to their own
knowledge involve a further dissociation from the- purposes with little concern for their theoretical origins
ory that is consistent with a practice epistemology or purposes.
on the use of knowledge.
A basic premise of the practice perspective on knowl-
A practice perspective is informed by philosophical edge use is that the knowledge artifacts being used
traditions, such as American pragmatism (Dewey, will be altered (Jarzabkowski, 2004; Whittington,
1988; James, 1907) and Aristotelian perspectives on 2003; Worren et al., 2002). Strategy theory generates
action through practical reason and practical coping a variety of artifacts, such as Boston Boxes, SWOT,
(Emirbayer and Mische, 1998; Tsoukas and Cum- Five forces, and various other frameworks that are
mings, 1997). It has recently gained prevalence as a used in action. However, their use is more complex
‘practice turn’ in the social sciences (see Ortner, than direct application, suggesting that while these
1984; Reckwitz, 2002; Schatzki et al., 2001), which artifacts might have a theoretical purpose or intent
informs empirical explanations in management disci- for which they were developed, they may be appro-
plines as diverse as technology (Ciborra and Lan- priated and adapted by actors for particular and the-
zarra, 1991; Orlikowski, 1992; 2000; Suchman, 1987), oretically unanticipated purposes and outcomes.
organizational learning and knowing (Blackler, This practical adaptation of artifacts to a purpose is
1995; Boland and Tenkasi, 1995; Brown and Duguid, defined as bricolage, the making do and ‘‘artisan-like
1991; 2001; Carlile, 2002; Cook and Brown, 1999), inventiveness’’ (de Certeau, 1984: xviii), by which
innovation (Dougherty, 1992; 2004), and strategy actors produce their own intentful activities from
(Blackler et al., 2000; Hendry, 2000; Hendry and Seidl, the artifacts that structure everyday activity. Brico-
2003; Jarzabkowski, 2004; 2005; Jarzabkowski et al., lage involves taking existing tools and fashioning
2006; Whittington, 1996; 2002; 2003; 2004). While them to an individual’s own ends, without particular
the assumptions underpinning representational uses regard for either the most appropriate tool for a task
of knowledge are based on rational choice, a practice or for the original purpose of the tool to be used
perspective has an assumption of knowledge use as (Baker et al., 2003; Levi-Strauss, 1966).

360 European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

Bricolage is inherent in the practical use of knowl- cess, both the framework and the organization are
edge, utilizing those knowledge artifacts that are at changed. Implementing the balanced scorecard (a
hand to exercise real-time judgments and actions in generic strategy framework) in the National Recon-
the face of uncertainty or ambiguity about future naisance Office (NRO) seemed at first to be a typical
strategy. Practitioners act upon future strategy with- direct application of a framework in order to assess
out accurate foresight. Strategy artifacts assist in this organizational performance. In the process of imple-
process not as rational tools for diagnosing future mentation, however, Chesley and Wenger (1999)
action, but as tools that may be fashioned to effect noted some key changes. First, the balance scorecard
current actions in ways that may bring about future model was adapted to fit the organizational context
actions. Rather than seeking new knowledge, in bri- and, secondly, its contextual use was the spur to stra-
colage the use of an existing, well-known tool that tegic conversations about organizational change.
is readily to hand is likely because such tools may
be more easily fashioned to the practitioner’s intent. The model was adapted because the NRO is a public
Strategists continue to draw upon established arti- agency. Terms such as ‘innovation and learning’
facts, such as Porter’s five forces, because these have (part of the original scorecard) were changed to ‘cus-
technical, cultural and linguistic legitimacy that tomer satisfaction’ since informants indicated that
makes them easily appropriable (Campbell, 1997). customers were the most important thing to NRO.
That is, technically, the tool is familiar and easy to In addition, ‘financial management’ (again part of
adapt, whereas a new tool might require significant the original scorecard) was expanded to include bud-
learning to get to a stage of action. Theoretically, geting since the NRO has to meet a budget rather
the tool is considered to be robust, hence its technical than make a profit. These changes simply repre-
legitimacy need not be questioned prior to use, even sented fitting the framework to the organizational
where the theoretical underpinnings may no longer apply context. However, its application initiated a series
to the use. Culturally the tool is widely accepted, hav- of recursive processes in the organization. First, the
ing been broadly disseminated in strategy texts and model provided a language (for the first time) in
other media. Linguistically, it is recognizable, mak- the organization to discuss strategy. Secondly, it
ing it easy to use the tool for purposes of mutual developed a perspective on sharing a strategy across
intelligibility (Garfinkel, 1967; Suchman, 1987). These what were effectively three separate divisions. Previ-
legitimacies of strategy tools, particularly well-estab- ously, each division had acted in isolation. Thirdly,
lished familiar tools, make them highly appropriable the application of the framework heightened anxi-
for bricolage (see Campbell, 1997; de Certeau, 1984; eties amongst managers since it explicitly assessed
Levi-Strauss, 1966). We may thus understand Grant performance and, fourthly, the net result was a sig-
(2003) and Rigby’s (2001a; b) findings that ‘old’ strat- nificant (and successful) organizational change.
egy tools, which might theoretically be presumed
less useful in some contextual conditions, continue From the perspective of this paper, the recursive pro-
to be used in practice. cesses are important aspects of this strategic change.
When strategic conversations began in the NRO,
However, such use is not direct application. Rather managers would typically revisit the scorecard
through bricolage tools may be significantly altered, framework to criticize and modify it. Quite literally,
generating hybrid forms that offer new modes of act- the framework gave them something to talk about
ing whilst retaining some traces of the past. Such bri- in a common language and in an organization where
colage is not insignificant. Indeed, bricolage is it had long been felt that textbook organizational
associated with the adaptation of organizations, insti- solutions did not work in practice. Modifying the
tutions, and their practices (Campbell, 1997, see also framework provided a legitimacy previously absent
Zbaracki, 1998). Neither does bricolage constitute and this legitimacy then facilitated discussions about
deviance nor ignorance about using a tool ‘properly’, performance and change. Yet, each discussion began
as it may involve high levels of practitioner skill and afresh by re-visiting the framework. In the final anal-
experience to deploy tools in practically situated ysis, the balanced scorecard resembled little of its ori-
ways that may not accord with their initial purpose ginal format and content. Yet, it had facilitated
(Giard, 1998). Most importantly, bricolage is not rare strategic conversations which were multi-level and
or unusual behavior. Rather, it is part of the everyday across divisions. It had also created strong commit-
creativity and reflexivity of practice (de Certeau, ment to change since the constant re-visiting and
1984; Schon, 1983). Bricolage dissociates knowledge modifications made to the framework encouraged
artifacts from their theoretical bases in the service strong levels of buy-in from staff. In this case we
of practitioners engaged in the everyday practice of can see evidence of bricolage and its effects in the
strategy. A brief example of bricolage in the use of practical application of a framework that was
a particular knowledge artifact, the balanced score- designed to assess performance but which was
card, can be found in Chesley and Wenger (1999). adapted to secure strategic conversation, integration
and change.
These authors show that the use of strategy artifacts
involves some form of co-evolution between the orga- The use and adaptation of a knowledge artifact in
nization and the framework in question. In this pro- order to foster strategic conversation and change

European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006 361
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

Dissociation 1:
Dissociation 2:
Simplification of theory to
Adaptation of artifacts
artifacts with few variables
through use in practice
& clear relationships

Theorizing Knowledge in action:


Knowledge artifacts:
actionable knowledge: Use by practitioners;
Tools, techniques
Contextual conditions Bricolage: Adaptive,
and frameworks
to strategy theory creative, everyday
arising from theory
practice of strategy

A: Representational epistemology:
Prescriptive assumptions about relationship of theory to practice

B: Practice epistemology:
Weak feedback on practical application of knowledge to theory

Figure 3 Dissociation of Strategy Theory in Practice

rather than to serve a technical diagnostic purpose that the limited empirical evidence suggests that
does not make it less actionable. Rather, increasingly strategy practitioners do indeed use the knowledge
the construction of strategic activity is conceptual- artifacts of strategy, we need to understand the dis-
ized in terms of narrative, language and discourse sociation process, modeled in Figure 3, which occurs
(Barry and Elmes 1997; Hardy et al., 2001; Jarzabkow- in putting theory into practice. The first step in the
ski and sillince, 2006; Knights and Morgan, 1991; dissociation process involves simplifying theoretical
Shaw et al., 1998). Indeed, Astley and Zammuto knowledge into artifacts that may be used in practice.
(1992) contend that the primary role of theoretical As seen in Figure 2, this may result in the blurring of
knowledge is to provide a conceptual language for theoretical boundaries between artifacts. The second
managers (see also Beyer and Trice, 1982; Pelz, phase of the dissociation process occurs when these
1978). However, with a few exceptions, such as Ches- artifacts meet the bricolage inherent in the everyday
ley and Wenger’s (1999) study, there has been little situated practice of strategy. The bold arrow, A, indi-
systematic empirical research into the role that strat- cates a representational epistemology with its pre-
egy knowledge and its artifacts play in the strategic scriptive assumptions about the role theory should
language and associated practice of organizations. play in practice, which fuels many existing criticisms
Instead, many academics seem wedded to a repre- that strategy knowledge is not actionable. The dotted
sentational epistemology, conceptualizing use as pri- arrow, B, illustrates a less researched area grounded
marily prescriptive application and expressing in a practice epistemology; how practitioners use
concern about modified uses of knowledge artifacts. knowledge artifacts in action, which may not be
For example, McCabe and Narayanan (1991) classi- directly associated with their theoretical provenance.
fied responses from managers who indicated that
they did not directly apply the PIMS and BCG tools
but used their underlying principles to inform their
strategy practice as ‘non-use’. Similarly, Grant Conclusions
(2003:513–14) expresses concern over the uptake of
capability-building theory because ‘‘interviewees fre- Asking the wrong questions results in the wrong, or at
quently referred to ‘building competitive advantage’, least only partial, answers. In this paper we argue that
‘exploiting key strengths’ and ‘leveraging core compe- asking if practitioners use theory is an over-simplified
tences’’’ but most had not developed these into sys- and potentially misleading question. Our agenda set-
tematic processes or tools. Thus, misleadingly, ting argues for a more comprehensive understanding
these practical uses of knowledge artifacts are repre- of actionable organizational knowledge from a prac-
sented as less actionable than their prescriptive theo- tice perspective. Knowing how practitioners use
retical uses. knowledge artifacts is important since practice may,
or may not be, consistent with theory. Practice also
This is not to imply that direct and prescriptive uses provides a feedback loop into the world of theory
of knowledge artifacts should not or do not occur in since it provides practical organizational problems
practice. Rather this paper proposes that actionable that are addressed by using and modifying theoretical
strategy knowledge may involve a range of practical knowledge artifacts. The examples given in this paper
uses of knowledge artifacts. More importantly, given are from theories of strategy, although we would

362 European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

argue that the relevance of the argument holds true for These arguments take us back to Weick (1995). Theo-
other areas of organization theory. Practice provides ries are little more than temporary approximations,
the links between strategy knowledge, the design of yet they become embedded in both the languages
a knowledge artifact, and its end use (see Weick, of theory and practice (Barry and Elmes, 1997). What
1995). This may be likened to the architectural design is notable, however, is the apparent importance of
process, which goes from abstract concepts to bricolage in this process. As practitioners experiment
sketches, blueprints, builders’ specifications and, with, modify and apply theoretical knowledge arti-
eventually, the physical manifestation of the building facts they combine elements of theory in ways that
(Liedtka, 2000; see also Hatcheul, 2001; Tranfield and strategy theorists might regard as separate and sacro-
Starkey, 1998). Academics are concerned with the ear- sanct. We argue that this bricolage produces modi-
lier phases of this process, whilst practitioners are fied forms of theory in practice that, however
more concerned with the translation of concepts into imperfect, are communicable both to improve and
the practical world of action (Hafsi and Thomas, develop practice and also to refine and modify the-
2005; Maclean and Macintosh, 2002). But the building ory. Bricolage involves the combination of theory
as a physical structure may differ in aspects of design, and practice which both develops out of and because
use and situation from its blueprint intentions. Situ- of the particular contextual setting in which applica-
ated conditions, such as prevailing winds, geology tion takes place. We suggest that this is probably true
and social community issues may prompt modifica- of the bulk of organizational theorizing (as Weick
tions to the building by practitioners. Practitioners argues). However, we have particularly examined
use strategy knowledge, developing it into situated the strategy part of organization theory because, in
artifacts of action. As indicated by arrow B in Figure practice, strategy is a central and expensive part of
3, the dissociation process is not a failing of practice organizational work (Whittington, 2003; Whittington
but a practical instantiation of theory that may well et al., 2003), where there is some empirical evidence
contribute to our theoretical understandings. Before to show that the artifacts of strategy have been assim-
we probe the problem of actionable theoretical knowl- ilated into practice (Chesley and Wenger 1999; Grant,
edge, we should first examine seriously the actual use 2003; Haspeslagh, 1982; Rigby, 2001a; b).
of knowledge artifacts in practice. That is, if the artifact
arising from theoretical knowledge remains action- We are not, however, suggesting that this use of arti-
able, then its underpinning theoretical provenance facts indicates that strategy theorizing is made more
may surely have something to learn from the theory relevant. Quite the reverse; we are arguing that the
in action. dissociations we have revealed between theory and
practice are helpful to organization theorists as they
While this paper has shown that the application of seek to increase the scale and scope of their theoriz-
strategy knowledge is not necessarily consistent with ing (Weick, 1995). If theories of organization really
the contextual conditions under which it ‘should’ be are approximations and temporary constructs, then
actionable, this does not imply abandonment of these their practical application in the form of bricolage
conditions as purely hypothetical. The contextual con- we have described should serve to re-inform and to
ditions of environmental velocity and knowledge modify the theories which underpin the various
intensity certainly pose strategic problems and issues frameworks they produce. Indeed, understanding
within a knowledge economy and so are pertinent to practice may lead to greater sophistication as well
both practice and theory. It is, therefore, still impor- as greater applicability of theory. However, the key
tant to examine comparatively both which strategy to this lies in theorists understanding accurately the
knowledge and artifacts are used and particularly world of the practitioner (Hafsi and Thomas, 2005;
how they are used under the different conditions of Maclean and Macintosh, 2002). Practitioners are lia-
the matrix provided in Figures 1 and 2. Future empir- ble to combine and re-use what theory provides in
ical research may trace different patterns of use of ways which do not always match the intentions of
similar artifacts in accordance with the different con- the theorists. This bricolage has to be understood
textual conditions and consequent nature of strategy by organization theorists before they can claim to
tasks. In particular, whilst practitioners may use and be making theories more relevant. This paper has
adapt the artifacts at hand for want of more specific attempted to uncover some of the details of this bri-
ones, this does not mean that more contextually appli- colage and to show how theorists might make use of
cable ones should not be sought. For example, socio- and interpret such practitioner actions.
technical research offers a precedent, illustrating
how technology breaks down as a tool in the social Last, but by no means least, academics are an impor-
context of use (Orlikowski, 1992; 2000; Ball and Wil- tant part of the production and distribution of strat-
son, 2000; Suchman, 1987). Such findings aid in the egy knowledge, through research and teaching.
design, user-interface and implementation of techno- Theorists expose thousands of undergraduates,
logical tools to make them more accessible to practice. MBAs and executive audiences to the academic
Similarly, with an enhanced practical understanding product. Yet little is known of how managers use
of what is used and how, it may be possible to design the theoretical artifacts typically gained from an
more appropriate strategy tools for particular contex- MBA or other business qualification (Keep and
tual conditions (Worren et al., 2002). Westwood, 2003; Priem and Rosenstein, 2000). As

European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006 363
ACTIONABLE STRATEGY KNOWLEDGE: A PRACTICE PERSPECTIVE

purveyors of a product we have a market-based Baldridge, D., Floyd, S. and Markoczy, L. (2004) Are
incentive to understand how that product is adopted managers from mars and academicians from venus?
Toward an understanding of the relationship between
and adapted in practice (Starkey and Madan, 2001), academic quality and practical relevance. Strategic
to say nothing of a moral obligation (Whittington, Management Journal 25, 1063–1074.
2003). This is increasingly important when we under- Ball, K. and Wilson, C. (2000) Power, control and com-
stand strategy as a pervasive and consequential prac- puter-based performance monitoring: Repertoires,
tice, the failure of which has serious implications resistance and subjectivities. Organization Studies
21(3), 539–565.
(Whittington et al., 2003). Tsoukas and Knudsen Barney, J. (1991) Firm resources and sustained competitive
(2002:428) propose that an important question for advantage. Journal of Management 17, 99–120.
strategy scholars; ‘‘How should knowledge about strat- Barry, D. and Elmes, M. (1997) Strategy retold: Toward a
egy be used?’’ We agree but suggest that it is a mis- narrative view of strategic discourse. Academy of
leading first question. First, we should ask and Management Review (22/2), 429–452.
Bettis, R.A. (1991) Strategic management and the straight-
ascertain how is knowledge about strategy used? jacket: An editorial essay. Organization Science 2(3),
Then, and only then, can we begin to establish the 315–320.
links between theory and practice which can help Beyer, J.M. and Trice, H.M. (1982) The utilization process:
inform and develop organization theory. A conceptual framework and synthesis of empirical
findings. Administrative Science Quarterly 27, 591–622.
Blackler, F., Crump, N. and McDonald, S. (2000) Organiz-
ing processes in complex activity networks. Organiza-
Notes tion 7, 277–300.
Bogner, W.C. and Barr, P.S. (2000) Making sense in hyper
1. The term ‘knowledge economy’ is consistently used in policy
competitive environments: A cognitive explanation for
documents such as that of the OECD and also in academia, for
the persistence of high velocity competition. Organi-
example Democracy in a Knowledge Economy was the key
zation Science 11(2), 212–226.
theme at the 2003 Academy of Management conference.
Boland, R.J. and Tenkasi, R.V. (1995) Perspective making
2. The authors wish to thank John McGee, Janine Nahapiet and
and perspective taking in communities of knowing.
Keith Ruddle for their contributions to the origins of this
Organization Science 6(4), 350–372.
diagram.
Bower, J.L. and Christensen, C.M. (1995) Disruptive tech-
3. Tools are arranged according to the degree of application to
nologies: Catching the wave. Harvard Business Review
contextual conditions, within the limits of space and the static
73(1).
model.
Bowman, E.H. and Hurry, D. (1993) Strategy through the
open lens: An integrated view of resources invest-
ments and the incremental-choice process. Academy of
Management Review 18(4), 760–782.
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PAULA JARZABKOW- DAVID C. WILSON, is


SKI, is a Reader in Stra- Professor of Strategic
tegic Management at Management at Warwick
Aston Business School and Business School. He is the
an Advanced Institute of author of eight books and
Management (AIM) Gho- many articles on strategy,
shal Fellow. decision making and
organisational change.
Her research focuses on the
dynamics of strategy for- He was Chairman of the
mation as a social practice, British Academy of Man-
particularly in pluralistic agement (1994–1997) and
contexts such as public was elected a Fellow of the
sector organizations and regulated firms. She has Academy in 1995. He is Chairman of the European
published refereed articles on this topic in Organization Group for Organisation Studies. He is currently
Studies, Journal of Management Studies and Journal of researching governance, uncertainty and strategy
Management Inquiry, co-edited a special issue of implementation.
Human Relations on the topic and, in 2005 published
the first research monograph in this area ‘Strategy as
Practice: An Activity-Based Approach’ with Sage.

European Management Journal Vol. 24, No. 5, pp. 348–367, October 2006 367

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