Strategy Implementation as Collective Behavior - Microfoundations and the Role of HRM

Abstract

According to Barney (1991), firms execute business strategies which enable them to avoid exter-nal threats and to exploit opportunities through the utilization of their internal resources and ca-pabilities. Consequently, Barney (2001) suggests that a firm’s ability to implement strategies may be a source of a competitive advantage. However, theoretical approaches to strategy implementa-tion are eclectic and fragmented (Noble, 1999). In this paper, we use threshold models of collec-tive behavior to explain between-firm differences in implementation success. Our approach spe-cifically acknowledges the multi-level nature of the process and offers three distinct mechanisms of supporting strategy implementation processes by human resource management (HRM) practic-es. As a result, HRM practices facilitate successful strategy implementation by 1) influencing the individual aptitude to support the new strategy, 2) transforming the characteristics of the work-force over time, and 3) facilitating the flow and accur...