Facilitating and inhibiting factors behind strategic change: Evidence in the Spanish private banking industry, 1983–1997

Abstract

This research explores the main facilitating and inhibiting factors behind strategic change in a single-industry context characterized by substantial environmental turbulence. Based on a dynamic and additive framework which includes theoretical arguments from the traditional strategic management and ecological approaches and an extensive review of several key empirical studies on the antecedents of strategic change, our study captures the cumulative effect of certain external and internal factors for and against strategic change. The results indicate that strategic change has been a frequent event in the chosen industry context. In this setting, the main facilitating factors behind strategic change have been linked to certain factors in the external context (environmental events linked to deregulation process and density) and in the internal context (CEO succession and tenure). But, alternatively, it can also be observed how other factors from both the external context (other environmental events associated with the liberalization process and industry concentration) and from the internal context (size) have acted as potential forces inhibiting the strategic transformation process experienced by most of the firms examined. We conclude by discussing the possible use of our framework in future research, with a view to further extending our understanding of potential antecedents of strategic change.