Strategic initiatives as motors of change - a qualitative approach to strategic renewal

Abstract

How do organizations adapt to turbulent environments? Possible answers to that question can be found in research on strategic initiatives which has moved to the center of attention of strategic management research, as initiatives can offer ways for organizations to engage in explorative learning while simultaneously improving their existing capabilities. While today we have a good understanding of which contextual factors and which behavior patterns facilitate initiative performance, there is a limited understanding about the micro-processes that determine initiative emergence and opportunity identification in established firms. Based on qualitative data from three medium-sized companies in Switzerland, Austria, and Germany, the purpose of this grounded theory study therefore was to shed light on these micro-processes. Four behavioral patterns are identified as prerequisites of opportunity identification: (1) solution-driven search, (2) slack search, (3) networking, and (4) regeneration, all of which improve access to and availability of information. Findings also indicate that the availability of information facilitates opportunity identification through an interaction with sensemaking activities of organizational actors. Furthermore, for strategic initiatives to emerge, actors have to engage in issue selling activities to gain necessary attention and resources to pursue the initiative. Based on these findings, this study develops a model of strategic initiative emergence in established firms. The results of the study complement prior research on opportunity identification and strategic initiatives, however, they also steer the view towards a sensemaking and sensegiving perspective for research on strategic initiatives. Avenues for future research are outlined.