Skip to main content
Log in

A choice and inevitability framework in strategic management: empirical evidence of its real-life existence

  • Original Paper
  • Published:
Review of Managerial Science Aims and scope Submit manuscript

Abstract

In the context of strategic management, strategic choice and determinism are presented as two distinct planning approaches. When treated as two distinct variables, they are responsible for the creation of a framework of analysis, in which it is possible to identify the four different human agency philosophical ontological perspectives, of determinism, hard incompatibilism, libertarianism and compatibilism, each perspective characterized by different amounts of strategic choice and determinism. By drawing on the theoretical context of the aforementioned perspectives, we provide empirical evidence of their real-life existence. The strategic framework not only reduces theoretical fragmentation, but also provides a link between the philosophical debate on free will/determinism and strategic management and can help to reduce uncertainty in planning.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7
Fig. 8

Similar content being viewed by others

Notes

  1. Libertarianism also describes a collection of political philosophies and movements that uphold liberty as a core principle. Although free will and independence of judgement are shared with the economic and management libertarianism to which this paper refers, the former political libertarianism is not directly related to the arguments of this paper.

  2. Marquis and Tilcsik (2013) advance a three-part definition of imprinting that emphasizes (1) brief sensitive periods of transition during which the focal entity exhibits high susceptibility to external influences; (2) a process whereby the focal entity comes to reflect elements of its environment during a sensitive period; and (3) the persistence of imprints despite subsequent environmental changes.

  3. When we refer to competition in each of the examined perspectives we consider the B2B, (B2) B2C or prosumers2B2prosumers competition.

References

  • Astley WG, Van de Ven AH (1983) Central perspectives and debates in organization theory. Admin Sci Q 28(2):245–273

    Article  Google Scholar 

  • Bhaskar R (1989) Reclaiming reality: a critical realist introduction to contemporary philosophy. Verso, London

    Google Scholar 

  • Bourdieu P (1988) Homo academicus. Stanford Academic Press, Stanford

    Google Scholar 

  • Bourgeois LJ (1984) Strategic management and determinism. Acad Manag Rev 9:586–596

    Article  Google Scholar 

  • Burrell G, Morgan G (1979) Sociological paradigms and organisational analysis. Ashgate, London, pp 21–25

    Google Scholar 

  • Bushman RM, Indjejikian RJ, Smith A (1996) CEO compensation: the role of individual performance evaluation. J Accoun Econ 21:161–193

    Article  Google Scholar 

  • Child J (1972) Organizational structure environment and performance. Sociology 2:1–22

    Article  Google Scholar 

  • Christensen CM, Raynor ME (2003) The innovator’s solution: creating and sustaining successful growth. Harvard Business School Press, Boston

    Google Scholar 

  • Croissant Y, Millo G (2008) Panel data econometrics in R: the plm package. J Stat Softw 27:14–32

    Article  Google Scholar 

  • De Rond M, Thietart RA (2007) Choice, chance, and inevitability in strategy. Strateg Manag J 28:535–551

    Article  Google Scholar 

  • Donaldson L (1987) Strategy and structural adjustment to regain fit and performance: in defence of contingency theory. J Manag Stud 24:1–24

    Article  Google Scholar 

  • Donaldson L (1997) A positivist alternative to the structure-action approach. Organ Stud 18(1):77–92

    Article  Google Scholar 

  • Donaldson L (2005) Following the scientific method: how I became a committed functionalist and positivist. Organ Stud 26:1071–1088

    Article  Google Scholar 

  • Emirbayer M, Mische A (1998) What is agency? Am J Sociol 103:962–1023

    Article  Google Scholar 

  • Finkelstein S, Hambrick DC (1990) Top-Management-Team tenure and organizational outcomes: the moderating role of managerial discretion. Admin Sci Q 35:480–503

    Article  Google Scholar 

  • Fitza MA (2013) The use of variance decomposition in the investigation of CEO effects: how large must CEO effect be to rule out chance? Strateg Manag J 35:1839–1852

    Article  Google Scholar 

  • Fitza MA (2017) How much do CEOs really matter? Reaffirming that the CEO effect is mostly due to chance. Strateg Manag J 38:802–811

    Article  Google Scholar 

  • Fontana R, Nuvolari A, Shimizu H, Vezzulli A (2012) Schumpeterian patterns of innovation and the sources of breakthrough inventions: evidence from a data-set of R&D awards. J Evolut Econ 22:785–810

    Article  Google Scholar 

  • Giddens A (1984) The constitution of society: outline of the theory of structuration. University of California Press, Berkeley

    Google Scholar 

  • Gomez-Mejia LR, McCann JE (1988) Measuring internal strategic choice decisions and their linkages to the reward structure: a case study in a high technology firm. Intl J Manpow 9:28–42

    Article  Google Scholar 

  • Gomez-Mejia LR, Tosi H, Hikkin T (1987) Managerial control, performance and executive compensation. Acad Manag J 30:51–70

    Google Scholar 

  • Gupta AK (1987) SBU strategies, corporate-SBU, and SBU effectiveness in strategy implementation. Acad Manag J 30:477–500

    Google Scholar 

  • Haji I (2000) Indeterminism, explanation, and luck. J Eth 4:211–235

    Article  Google Scholar 

  • Harland PE, Uddin Z, Laudien S (2020) Product platforms as a lever of competitive advantage on a company-wide level: a resource management perspective. Rev Manag Sci 14:137–158. https://doi.org/10.1007/s11846-018-0289-9

    Article  Google Scholar 

  • Haynes K, Hillman A (2010) The effect of board capital and CEO power on strategic change. Strateg Manag J 31:1145–1163

    Article  Google Scholar 

  • Heisenberg W (1926) Quantenmechanik. Die Naturwissenschaften 14:894–899

    Article  Google Scholar 

  • Hoffmann PS (2014) Internal corporate governance mechanisms as drivers of firm value: panel data evidence for Chilean firms. Rev Manag Sci 8:575–604. https://doi.org/10.1007/s11846-013-0115-3

    Article  Google Scholar 

  • Hrebiniak LG, Joyce WF (1985) Organizational adaptation: strategic choice and environmental determinism. Admin Sci Q 30:336

    Article  Google Scholar 

  • ISO 31000 (2009) Risk management—principles and guidelines. International Organization for Standardization

  • Ittner CD, Larcker DF, Randall T (2003) Performance implications of strategic performance measurement in financial service firms. Acc Org Soc 28:715–741

    Article  Google Scholar 

  • Jost P (2013) An economic theory of leadership styles. Rev Manag Sci 7:365–391. https://doi.org/10.1007/s11846-012-0081-1

    Article  Google Scholar 

  • Joullié JE (2018) Management without theory for the twenty-first century. J Manag Hist 24:377–395

    Google Scholar 

  • Kane R (1999) On free will, responsibility and indeterminism: responses to Clarke, Haji, and Mele. Philos Explor 2:105–121

    Article  Google Scholar 

  • Karhu P, Ritala P (2020) The multiple faces of tension: dualities in decision-making. Rev Manag Sci 14:485–518. https://doi.org/10.1007/s11846-018-0298-8

    Article  Google Scholar 

  • Leca B, Naccache P (2006) A critical realist approach to institutional entrepreneurship. Organization 13:627–651

    Article  Google Scholar 

  • Malerba F (2005) Sectoral systems: how and why innovation differs across sectors. The Oxford handbook of innovation. Oxford University Press, Oxford, pp 380–406

    Google Scholar 

  • Marquis C, Tilcsik A (2013) Imprinting: toward a multilevel theory. Acad Manag Ann 7:195–245

    Article  Google Scholar 

  • Mellahi K, Wilkinson A (2004) Organizational failure: a critique of recent research and a proposed integrative framework. Int J Manag Rev 5–6:21–41

    Article  Google Scholar 

  • Montanari JR (1979) Strategic choice: a theoretical analysis. J Manag Stud 16:202

    Article  Google Scholar 

  • Ou Yang Z, Cheng P, Liu Y (2019) The role of product line breadth, product pre-entry experience, and market uncertainty in explaining followers’ speed of feature entry. Rev Manag Sci. https://doi.org/10.1007/s11846-019-00328-5

    Article  Google Scholar 

  • Penrose ET (1959) The theory of the growth of the firm. John Wiley, New York

    Google Scholar 

  • Porter ME (1981) The contributions of industrial organization to strategic management. Acad of Manag Rev 6:609–620

    Google Scholar 

  • Pucheta-Martínez MC, Gallego-Álvarez I (2019) Do board characteristics drive firm performance?. Rev Manag Sci, An international perspective. https://doi.org/10.1007/s11846-019-00330-x

    Book  Google Scholar 

  • Sarasvathy SD (2001) Causation and effectuation: toward a theoretical shift from economic inevitability to entrepreneurial contingency. Acad Manag Rev 26:243–263

    Article  Google Scholar 

  • Schreyögg G (1980) Contingency and choice in organization theory. Organiz Stud 1:305–326

    Article  Google Scholar 

  • Schumpeter J (1911) The theory of economic development. Harvard University Press, Cambridge

    Google Scholar 

  • Schumpeter J (1942) Capitalism. Socialism and democracy. The theory of organizations, Heinemann

    Google Scholar 

  • Shwairef A, Amran A, Iranmanesh M, Ahmad N (2019) The mediating effect of strategic posture on corporate governance and environmental reporting. Rev Manag Sci. https://doi.org/10.1007/s11846-019-00343-6

    Article  Google Scholar 

  • Silverman D (1970) The theory of organizations. Heinemann, London

    Google Scholar 

  • Simons R (1991) How new top managers use control systems as levers of strategic renewal. Strateg Manag J 15:169–189

    Article  Google Scholar 

  • Spector P, Brannick M (2013) Methodological urban legends: the misuse of statistical control variables. Orga Res Meth 14:287–305

    Article  Google Scholar 

  • Stanford Encyclopedia of Philosophy(a) (2018) Accessed 6 Apr 2018. http://plato.stanford.edu/entries/compatibilism/

  • Stanford Encyclopedia of Philosophy(b) (2018) Accessed 8 May 2018. https://plato.stanford.edu/archives/win2009/entries/determinism-causal/

  • Sydow J, Schreyögg G, Koch J (2009) Organizational path dependence: opening the black box. Acad Manag Rev 34:689–709

    Google Scholar 

  • Thompson JD (1967) Organizations in action. McGraw-Hill, New York

    Google Scholar 

  • Tversky A, Kahneman D (1974) Judgment under uncertainty: heuristics and biases. Science 185:1124–1131

    Article  Google Scholar 

  • Varadarajan PR, Clark T, Pride WM (1992) Controlling the uncontrollable: managing your market environment. Sloan Manag Rev 33:39–53

    Google Scholar 

  • Voigt K (2011) Special topic: strategic innovations. Rev Manag Sci 5:263. https://doi.org/10.1007/s11846-011-0070-9

    Article  Google Scholar 

  • Wack P (1985) Scenario uncharted waters ahead. Harv Bus Rev 9–10:73–89

    Google Scholar 

  • Weiner N, Mahoney TA (1981) A model of corporate performance as a function of environmental, organizational and leadership influences. Acad Manag J 24:453–470

    Google Scholar 

  • Werner S, Tosi HL (1995) Other People’s Money: the effects of ownership on compensation strategy and managerial pay. Acad Manag J 38:1672–1681

    Google Scholar 

  • Werner S, Tosi HL, Gomez-Mejia L (2005) Organizational governance and employee pay: how ownership structure affects the firm’s compensation strategy. Strat Manag J 26:377–384

    Article  Google Scholar 

  • Whittington R (1988) Environmental structure and theories of strategic choice. J Manag Stud 25:521–536

    Article  Google Scholar 

  • Whittington R (2010) Giddens, structuration theory and strategy as practice. Cambridge University Press, Cambridge handbook of strategy as practice. Cambridge, pp 109–126

    Google Scholar 

  • Wooldridge J (2002) Econometric analysis of cross-section and panel data. MIT Press, Cambridge (MA)

    Google Scholar 

  • Yoon W, Kim SJ, Song J (2016) Top management team characteristics and organizational creativity. Rev Manag Sci 10:757–779. https://doi.org/10.1007/s11846-015-0175-7

    Article  Google Scholar 

  • Zailani S, Shaharudin MR, Razmi K, Iranmanesh M (2017) Influential factors and performance of logistics outsourcing practices: an evidence of Malaysian companies. Rev Manag Sci 11:53–93. https://doi.org/10.1007/s11846-015-0180-x

    Article  Google Scholar 

  • Zajac EJ, Kraatz MS, Bresser RKF (2000) Modelling the dynamics of strategic fit: a normative approach to strategic change. Strateg Manag J 21:429–453

    Article  Google Scholar 

Download references

Acknowledgements

We are grateful to three anonymous reviewers and the editor of the journal for their comments which improved this article. The usual disclaimer applies.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Constantinos Alexiou.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Appendix

Appendix

Table 9 Dependent and independent variables’ descriptive statistics)

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Tumidei, D., Alexiou, C. & Bourne, M. A choice and inevitability framework in strategic management: empirical evidence of its real-life existence. Rev Manag Sci 15, 1729–1766 (2021). https://doi.org/10.1007/s11846-020-00401-4

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11846-020-00401-4

Keywords

JEL Classification

Navigation