Strategic Management: The evolution of the field

Two factions:
- Strategy as plan – concerned with past strategy
- Strategy as pattern – more concerned with
management part
Late 1930s – Early 1980s
Pioneering scholars: Barnard (1938), Ansoff (1965), and
Chandler Jr (1962)
As defined by Chandler Jr (1962) – Strategy is the
planning and implementation of business development. It
is consisted of choosing fundamental longer-term goals
and thus adopting action plans. It aims to predict future
using available knowledge and past behavior.
Ansoff (1965) introduced concepts such as competence,
mission and definition of business. Based on his
observation, business aimed maximizing financial returns.
Schumpeter (1942)- “creative destruction” to drive out
competition and create monopoly.
Relation of Strategy, structure, and performance –
Initiated by Chandler Jr (1962) and Williamson (1975)
Porter’s study dealt with industry structure and strategic
groups and competitive factors that determine firm
performance
+Competitive advantage, according to Porter (1980)
depends on firm's ability to position and differentiate
themselves in their industry
+All these studies insisted on the fact that corporate
culture and experience are far more significant
determinants of strategy as compared to rate of change
of environment.
+”business policy” > strategic management
+ Lawrence and Lorsch (1967) segmented environment
as—market sub environment, technoeconomic and
scientific sub environment
Resource based view (RBV)
Four types of adaptation strategies: Defenders,
prospectors, analyzers, and reactors
. The knowledge-based view (KBV) of the firm suggests
that the firms need to be flexible under uncertain
conditions to respond rapidly to unknown circumstance