Toward a dynamic understanding of multilevel influences on organizational strategy

Abstract

Although organizational strategy has been increasingly examined from a multilevel perspective, there has been little work on the dynamics by which micro and macro influences are temporally interrelated: How do multilevel influences develop organizational strategy over time? Drawing on a longitudinal case study of the diamond industry, this article advances a multilevel process model of organizational strategy, unpacking the mechanisms by which strategy is contextually driven. In doing so, this article advances three specific contributions. First, we show how the magnitude and prominence of multilevel influences on organizational strategy can vary significantly over time, laying bare when micro and macro contexts matter most. Second, we demonstrate how the strategic impact of micro and macro contexts depends largely on the interplay between both system levels, highlighting how a combined understanding of both is crucial for making sense of how strategy trajectories evolve. Finally, we extend the methodological toolbox that multilevel scholars can draw on by advancing a dynamic case-based approach, allowing researchers focusing on multilevel strategy to enrich their qualitative inquiries with time as a critical factor.