Similarity judgments in strategy formulation: role, process and implications

Article Abstract:

Judgments of similarity, defined as the identification and assessment of similarity or difference, form the basis of strategic decisionmaking of firms. By conducting studies on similarity judgments, researchers can illuminate on strategic decisionmaking, firm success and failure, and application of similarity concepts in strategy-performance research. However, there is a shortage of strategy-formulation studies focusing on the process of making similarity judgments. To amend this shortcoming, a study was conducted putting emphasis on the role of similarity judgments in strategy planning. It also highlighted cognitive findings demonstrating that similarity appraisals by decisionmakers are biased. The cognitive results contributed in the development of a new process explanation for a broad spectrum of seemingly independent strategic errors.

Similarity judgment

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Speaking of strategy

Article Abstract:

Inkpen argued in a recent paper (Inkpen and Choudhry, 1995) that most strategic management studies fail to recognize that an organization might not have a strategy at all. In this light, he offers a new classification of the contents of strategy that includes situations where the absence of strategy is strategic. In this classification, he assigns the absent strategies or strategies of absence into three categories. These are the transitional absences of strategy, the virtuous absences of strategy and the absence of failure. However, Inkpen basically argues that strategy is a feature of every organization even when it is absent through its virtuous absence, transition or failure. Essentially, he simply expanded the classification of the strategic property of organizations and 'gives presence to absence.'

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Dynamic interaction between strategy and technology

Article Abstract:

The interaction between strategy and technology is examined. One approach describes the impact of existing technology on a firm's current strategy, while another examines the effect of current strategy on the development of futre technology. Still another depicts the impact of current technology on future strategy. These three perspectives result in an interactive pattern wherein current strategy takes advantage of the benefits of existing technology; followed by the support given to future technological innovation by current strategy; and finally, the use of existing technology in the shaping of future strategy. In going through this sequence, strategic analysis becomes less conventional and economics-oriented and more internal-, developmental- and psychology-oriented.

Planning, Technological innovations

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