IDEA GENERATION IN STRATEGIC RENEWAL.

Abstract

Though it has become central in strategic renewal research, the concept of emergent strategic initiative has not received a great deal of theoretical scrutiny. Existing theory combines evolutionary, political and cognitive logics to characterize the renewal process, and this provides a useful framework for understanding the context in which emergent strategic initiatives develop. To date, however, theory has yet to offer a systematic explanation of (1) where strategic initiatives come from, (2) how they develop and (3) what they contribute to the development of organizational capabilities. Building on prior research, this paper identifies four key processes associated with the development of strategic initiatives: interpretation, articulation, elaboration and ratification. Emergent strategic initiatives are born when a middle manager's interpretation of an idea links it to a strategic issue. Issues become initiatives when an informal social network forms around a central actor, who is also frequently a middle manager. As the middle manager articulates the idea, the tacit or subjective knowledge associated with it becomes more explicit. This reduces the initiatives reliance on a single actor and facilitates the elaboration of the emergent social network. Cooperation among sub-units triggers reconsideration of existing functional level knowledge and reconfiguration of patterns of coordination among sub-units. This leads to the development of new procedural knowledge in the form of emergent organizational routines. Finally, ratification involves both substantive links to official strategy and process links to the political dynamics within top management.