Skip to main content

The Foundations of Strategic Thinking: Effectual, Strategic, and Causal Reasoning

  • Chapter
Book cover Neostrategic Management

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

In this chapter, we dissect the differences between strategic planning and strategic thinking and suggest that traditional methods of planning no longer yield the benefits as in the past. Our analysis lays this failure on the use of a causal reasoning logic that alone no longer benefits organizations. Then we also examine foundational beliefs underpinning strategic thinking by examining the connections among the logic of entrepreneurial, causal, and strategic reasoning. In this analysis we distinguish two binary forms of thinking—causal and effectual—to frame our discussion, and then in the Hegelian tradition we press on to form a higher category of transcendent reconciliation through dialectic synthesis to introduce strategic reasoning. We end by picturing how strategic thinking concepts can form a new organizational change model that supersedes traditional planning. We call this model the strategic thinking protocol, which incorporates the logics of yesterday, today, and tomorrow.

“The world as we have created it is a process of our thinking. It cannot be changed without changing our thinking.”

—Albert Einstein

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

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Axelrod, R., Axelrod, E., Jacobs, J., & Beedon, J. (2006). Beat the odds and succeed in organizational change. Consulting to Management, 17(2), 6–9.

    Google Scholar 

  • Basadur, M. (2004). Leading others to think innovatively together: Creative leadership. The Leadership Quarterly, 15, 103–121.

    Article  Google Scholar 

  • Bonn, I. (2001). Developing strategic thinking as a core competence. Management Decision, 39(1), 63–70.

    Article  Google Scholar 

  • Bonn, I. (2005). Improving strategic thinking: A multilevel approach. Leadership and Organization Development Journal, 26(5), 336–354.

    Article  Google Scholar 

  • Covey, S. (2004). The 8th habit: From effectiveness to greatness. New York: Free Press.

    Google Scholar 

  • Graetz, F. (2002). Strategic thinking versus strategic planning: Towards understanding the complementarities. Management Decision, 40(5/6), 456–462.

    Article  Google Scholar 

  • Heracleous, L. (2003). Strategy and organization. Cambridge: University Press.

    Google Scholar 

  • Holland, J. (1995). Hidden order: How adaptation builds complexity. New York: Helix Books.

    Google Scholar 

  • Jelenc, L. (2008). The impact of strategic management and strategic thinking on the performance of Croatian entrepreneurial practice . Doctoral dissertation, University of Ljubljana, Slovenia.

  • Kim, W. C., & Mauborgne, R. (2005). Blue ocean strategy: How to create uncontested market space and make the competition irrelevant. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Liedtka, J. M. (1998). Linking strategic thinking with strategic planning. Strategy and Leadership, 26(4), 30–35.

    Google Scholar 

  • Mintzberg, H. (1994). The rise and fall of strategic planning: Reconceiving the roles for planning, plans, planners. New York: Free Press.

    Google Scholar 

  • O’Shannassy, T. (2003). Modern strategic management: Balancing strategic thinking and strategic planning for internal and external stakeholders. Singapore Management Review, 25(1), 53–67.

    Google Scholar 

  • Pisapia, J. (2009). The strategic leader: New tactics in a globalizing world. Charlotte, NC: Information Age Publishers.

    Google Scholar 

  • Sarasvathy, S. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2), 243–263.

    Google Scholar 

  • Sarasvathy, S. (2008). Effectuation: Elements of entrepreneurial expertise. Northampton, MA: Edward Elgar.

    Book  Google Scholar 

  • Sarasvathy, S., & Saras, D. (2004). Making it happen, beyond theories of the firm to theories of firm design. Entrepreneurship Theory and Practice, 28(6), 519–531.

    Article  Google Scholar 

  • Sirkin, H., Keenan, P., Jackson, A., Kotter, J., Beer, M., Nohria, N., et al. (2005). Lead change—successfully (3rd ed.). Cambridge: HBR Article Collection.

    Google Scholar 

  • Sloan, J. (2014). Learning to think strategically (2nd ed.). London: Routledge.

    Google Scholar 

Download references

Acknowledgment

Lara Jelenc’s work has been fully supported by the University of Rijeka, Croatia, under the project number 13.02.1.3.07 and 13.02.2012.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Lara Jelenc .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2016 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Pisapia, J., Jelenc, L., Mick, A. (2016). The Foundations of Strategic Thinking: Effectual, Strategic, and Causal Reasoning. In: Vrdoljak Raguž, I., Podrug, N., Jelenc, L. (eds) Neostrategic Management. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-18185-1_4

Download citation

Publish with us

Policies and ethics