Corporate strategy and the environment: fit through teleological approaches

Abstract

Complexity-based approaches to corporate strategy are particularly important in times of extensive environmental uncertainty where previous corporate predictions and forecasts regarding environmental changes frequently turn out to be invalid. The purpose of the article is to develop a framework that integrates corporate strategy and complexity-based teleological approaches. The framework is accompanied by propositions that contribute to literature by showing what teleological approaches are consistent within different corporate strategies and environmental settings. The propositions represent ways of achieving a fit between the number of freedom degrees in corporate strategy formulation and the level of environmental uncertainty. The application of teleological approaches in the context of corporate strategy generates additional and valuable insights to both theory and practice.