Strategy Formulation Process and Interorganizational Collaboration

Abstract

The study examines how two major strategy formulation approaches influence city governments’ decision to collaborate. Collaboration with governmental and nongovernmental actors gives rise to varying levels of risks, which can be managed by using the appropriate strategy formulation approach. Using data from a national survey of cities, we find that formal strategic planning catalyzes cross-sectoral collaboration but is not associated with government-to-government collaboration. Logical incrementalism has a consistently negative relationship with collaboration regardless of sector. The findings indicate that collaboration can be limited by city governments’ capacity to undertake formal strategic planning and their propensity to engage in incrementalist decision-making.